Strategies for increasing economic efficiency of agricultural enterprises in the context of digitalization

The article examines innovative approaches to enhancing the economic efficiency of agricultural enterprises in the context of the digital transformation of the agrarian sector. The study aims to identify key factors influencing the efficiency of agricultural production and to develop practical recommendations for the implementation of digital technologies. The research methodology includes an econometric analysis of panel data from 250 agricultural enterprises over the period 2018-2023, as well as expert interviews with farm managers (n=30). The results indicate that the digitalization of business processes allows for an increase in production profitability by 12-18% (p<0.01), a reduction in costs by 8-12% (p<0.05), and an increase in crop yield of key cultures by 15-22% (p<0.01). Key barriers to digital transformation have been identified: a shortage of qualified personnel (reported by 78% of respondents), high initial investments (65%), and insufficient infrastructure (52%). A phased digitalization model, considering the specifics of individual enterprises, has been proposed. The study substantiates the need for government support and the development of partnerships between the agrarian business sector, IT companies, and research centers. The findings have significant practical relevance and can be utilized in the development of strategies for advancing agricultural enterprises.

Authors

Publication Details

Journal
Economy of agricultural and processing enterprises
Published
2025-01-01
DOI
https://doi.org/10.31442/0235-2494-2025-0-3-58-63
Primary Topic
Digitalization and Economic Development in Agriculture
Type
article
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article

Strategies for increasing economic efficiency of agricultural enterprises in the context of digitalization

Petr I. Chuvakhin
Economy of agricultural and processing enterprises
Digitalization and Economic Development in Agriculture
article

Strategies for increasing economic efficiency of agricultural enterprises in the context of digitalization

Petr I. Chuvakhin
article en

Abstract

The article examines innovative approaches to enhancing the economic efficiency of agricultural enterprises in the context of the digital transformation of the agrarian sector. The study aims to identify key factors influencing the efficiency of agricultural production and to develop practical recommendations for the implementation of digital technologies. The research methodology includes an econometric analysis of panel data from 250 agricultural enterprises over the period 2018-2023, as well as expert interviews with farm managers (n=30). The results indicate that the digitalization of business processes allows for an increase in production profitability by 12-18% (p<0.01), a reduction in costs by 8-12% (p<0.05), and an increase in crop yield of key cultures by 15-22% (p<0.01). Key barriers to digital transformation have been identified: a shortage of qualified personnel (reported by 78% of respondents), high initial investments (65%), and insufficient infrastructure (52%). A phased digitalization model, considering the specifics of individual enterprises, has been proposed. The study substantiates the need for government support and the development of partnerships between the agrarian business sector, IT companies, and research centers. The findings have significant practical relevance and can be utilized in the development of strategies for advancing agricultural enterprises.

Economy of agricultural and processing enterprises(3)
Openalex Percentile: Top 75%
Digitalization and Economic Development in Agriculture
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