Changes in the Profitability of Production of Industrial Potatoes in Poland – A Case Study

Robert Cirocki and Barbara Gołębiewska

Roczniki (Annals), 2019, vol. 2019, issue 2

Abstract: This paper assesses the profitability of industrial potato production in Poland. The studies indicated changes on the market concerning industrial potatoes and involved an assessment of the area of cultivation and level of production achieved in comparison to other EU countries. Farm profitability is determined based on the calculated gross margin from which its agricultural income was estimated. An analysis of the profitability of assets and sales was also prepared. Changes in potato production and crop yield as well as the general situation on the potato market were analysed. It was shown that the purchase price of potatoes and potato crop cultivation materials are the most important factors contributing to the profitability of potato production. Research was carried out at a specifically selected family farm specializing in potato production. It was observed that the farmer did not pursue drastic reductions in production costs, as this would have led to a decrease in income and profitability. However, their strategy did allow for a sufficiently high gross margin to be obtained. The gross margin from potato production that was obtained in 2014-2018 was positive, and higher than the average in their province.

Keywords: Agribusiness; Production Economics (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:paaero:293825

DOI: 10.22004/ag.econ.293825

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