No 1/2022, March

Agribusiness Firms and Rural Dairy Development. A Case of FrieslandCampina Dairy Development Programme in Nigeria


Rural development interventions funded by private agribusiness firms may positively or negatively affect rural farmers' welfare. A positive effect is that such interventions may provide farmers with market access. The negative effect could be that such firms may be solely motivated by profit and may exploit the farmers. In this paper, we explore the role of FrieslandCampina Dairy Development Programme, a multinational firm with headquarters in Europe, in improving the welfare of rural dairy farmers in Nigeria. We use a two-wave panel survey of 122 programme participants and 95 non-participants. We focus on two outcome measures – annual dairy income and daily milk yield - and use a pooled ordinary least squares method to understand the programme effect. We also explore the mechanism of effect by assessing the programme effects on farmers' sustainable dairy management practices using a negative binomial regression method. Our results suggest that the programme has positive welfare effects on farmers. We attribute these effects to farmers' access to reliable markets offered by the programme and the informal business arrangement between the farmers and the agribusiness firm. Potential policy implications include that governments should encourage other private agribusiness firms to set up similar development programmes.

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Testing the Agricultural Induced EKC Hypothesis: Fresh Empirical Evidence from the Top Ten Agricultural Countries


Within the scope of sustainable development goals and climate change mitigation, this study focuses on investigating the effects of energy consumption, agriculture, and economic growth on CO2 emissions in the top ten agricultural countries for the period 1997-2016. By investigating the validity of the agricultural induced environmental Kuznets curve (EKC), the study mainly aims to explore how agricultural activities affect environmental quality. In doing so, this study utilizes the augmented mean group (AMG) estimator that allows for heterogeneity and cross-sectional dependence. The results of the AMG estimator suggest that the agricultural induced EKC hypothesis is valid for six out of the ten countries. The empirical results also indicate that agriculture reduces CO2 emissions, while energy consumption accelerates environmental degradation. All these results suggest that agricultural production and economic development can play an essential role in reducing environmental pollution.

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Analysis of Deviations – the Role of Controlling in Small and Medium Sized Agricultural Enterprises


One of the main tasks of controlling is to identify the deviations of actually achieved results compared to the planned and to find out reasons for their occurrence. Lack of attention to this activity can have negative impact on the company's performance. The paper focuses on identification of selected research results that was conducted in Slovak agricultural enterprises. The main goal of the paper is to evaluate and analyse the approach of agricultural enterprises in Slovakia to the implementation of deviations analysis. The basic technique applied for data collection was a questionnaire survey, which was supplemented by a direct interview with managers of selected agricultural entities. The implementation of the questionnaire survey was preceded by a pre-research (pilot study) carried out in the Czech Republic. Obtained data were statistically examined applying the XLStat statistical program. Based on achieved research results we confirmed presumptions from the theoretical background elaborated in the paper, stating that the analysis of deviations is an integral part of controlling. Furthermore, we identify problematic areas for deviations analysis and also controlling implementation in agricultural enterprises in Slovakia.

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Digitalization of Agricultural Industry – the Vector of Strategic Development of Agro-industrial Regions in Russia


Today the strategic vector of agricultural development is connected with the introduction of digital technologies. Digitalization leads not only to transformation of production processes in the industry but as well has much wider environmental, social and institutional context. This paper is aimed at finding out what digital transformations have the most strategic significance for social and economic development of agro-industrial regions of the south of Russia, as well as at revealing the factors fostering or constraining these processes. Digital transformation in the south Russian regions has just affected the first level – application of new information technologies for raising economic performance and simultaneous alleviating environmental problems. The perspectives of digitalization of the agriculture are connected with developing open collaborative systems with different types of business collaborations. The authors highlight the main problems of realizing digital transformations in the agriculture of the south regions solving of which can be provided by means of authorities’ institutional decisions within regional strategies of digitalization. This research gives an idea of the potential of agricultural digitalization and its results can be used for forming theoretical and methodological grounds for strategic development of agriculture in agro-industrial regions in modern circumstances.

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Regional Impacts of Direct Payments on Farm Productivity and Efficiency in the European Union


This paper analyses the regional impacts of direct payments on the labour and land productivity of European farms. The basic assumption of the research is that direct CAP subsidies have a positive effect on productivity and efficiency. This was tested by quantitative regression-analysis models, which were based on NUTS2-level regional data from 2008-2018. The results show that direct subsidies have a negative effect on labour and productivity in agriculture, a finding that can be attributed to a number of underlying factors. The direction and magnitude of these productivity effects differ markedly between old and new Member States.

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The Effect of Inward Foreign Direct Investment and Information and Communication Technology on Economic Growth in Indonesia


Inward foreign direct investment indirectly or directly affect economic growth through various means. For instance, the direct effect might be attributed to production factors, while information and communication technology changes are linked to the indirect effect. This study aimed to examine the impact of direct and indirect inward foreign investment and information and communication technology on Indonesian economic growth. The data was collected from the annual time series from 1994 to 2019. Furthermore, an autoregressive distributed lag model was used to analyze the data and provide accurate conclusions. The results showed that short-term and long-term inward foreign direct investment and information and communication technology significantly affects Indonesian economic growth. In the long term, the direct and indirect effects of inward foreign direct investment are negative and positive, respectively. However, the long-term effect of information and communication technology on economic growth is positive.

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The Role of Banks in Financing the Slovak Agricultural Sector


A well-developed financial system plays an important role in financing individual sectors in the country. In this paper, we analyse credit development in the agricultural sector in the Slovak Republic from various perspectives. We examine the relationship between the agricultural sector's characteristics and the volume of funding at the regional level. The paper's methodology is based on a k-means algorithm for clustering the Slovak regions with four criteria. Then we examine the relationship between financial development and agricultural growth by employing the Cobb-Douglas production function. This study uses annual data covering the period from 2008 to 2019. The results reveal that financial development has a significant and positive effect on agricultural production and agricultural growth.

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Smart Agricultural Decision Support Systems for Predicting Soil Nutrition Value Using IoT and Ridge Regression


Cost effective agricultural crop productivity is an everlasting demand, this predominant expedition has raised a global shift towards practicing smart agricultural methods to increase the productivity and the efficiency of the agricultural sector, using IoT. This research identified the benefits and the challenges in IoT adoption as an alternate for out-of-date agricultural practices. The proposed decision support system using IoT for Smart Soil Nutrition Prediction (SSNP) adopts IR sensors and implements diffuse reflectance infrared spectroscopy. Information is transferred using Arduino and Zigbee protocol. It has indicated precise outcomes in various studies giving a high repeatable, low cost and fast estimation of soil properties. The measure of light absorbed by a soil example is estimated, inside several particular wavebands over a scope of frequencies to yield an infrared range utilizing an IR sensor. Using the given values, the experimental analysis using the dataset and the nutrition values of the soil such as Ca, P, SOC, Sand and pH are predicted. This proposed IoT framework would enhance the farmer’s knowledge regarding the type of crops they should grow to get maximum profit from their agricultural produce.

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The Role of Remote Sensing in Agriculture and Future Vision


The sustainability of agriculture became one of the key priorities for policy frameworks at global and European levels. The global initiative of the United Nations that defined the Sustainable Development Goals and the European Green Deal. Use of remote sensing to achieve sustainable practices in the entire agriculture value chain can significantly contribute to fulfil the set goals by the policy frameworks. This paper analyses the stakeholders involved in agriculture including the agri-food, public, financial and food security sectors, and their needs. In situ and virtual workshops with relevant stakeholders including an online survey served as a primary source of input for the user requirements analysis and as a platform for feedback and discussion. As a result, a set of key documents including a white paper, a policy roadmap and a strategic research agenda were published. Recommendations for future utilisation of remote sensing in agriculture are described in this paper.

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The Impact of Subsidies on the Development of Beekeeping in the Czech Republic


Given its role in landscape sustainability and health benefits, beekeeping is supported in all EU countries. The paper focuses on the assessment of the impact of beekeeping subsidies on the number of bee colonies in the Czech Republic. Subsidies in the Czech Republic are provided from national sources (state budget), from the budgets of individual regions and from EU sources. The paper presents the development of the number of bee colonies in the Czech Republic from 1990 to 2018. Until 2008, the number of bee colonies in the Czech Republic was decreasing. A significant increase occurred only in 2013. The influence of the amount of subsidy on the number of bee colonies was analysed using a panel data model and the Pearson correlation coefficient. The results show that subsidies have a significant positive influence on the number of bee colonies in Czech Republic and also in the individual regions of the Czech Republic. In terms of the specific focus of subsidies, we can observe a significant positive dependence between the number of bee colonies per beekeeper and technical support. Subsidies for the fight against varroosis are also very important.

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