Shareholder Value Generation within the Agro-Food Financial Supply Chain

Zdeněk ToušekJana HinkeBarbora MalinskáMartin Prokop

DOI 10.7160/aol.2022.140310
No 3/2022, September
pp. 125-135

Toušek, Z., Hinke, J., Malinská, B. and Prokop, M. (2022) “Shareholder Value Generation within the Agro-Food Financial Supply Chain", AGRIS on-line Papers in Economics and Informatics, Vol. 14, No. 3, pp. 125-135. ISSN 1804-1930. DOI 10.7160/aol.2022.140310.

Abstract

The article aims to define the Czech Agro-Food supply chain and develop financial metrics to quantify the economic value added generated within the supply chain. The study is based on a sample of complete financial statements from 2011 to 2018 from the agro-food organisations. The authors prove that the retail sale sector generates high shareholder value. Contrary to that, the wholesale sector´s shareholder value deteriorated over the respective period owing to reinforced capital intensity measures, resulting in low profitability. A special case is primary agricultural production, where the low shareholder value is offset by public transfers influencing all value drivers either directly or non-directly. These constantly changed, both in the single sector and financial supply chain, thus concluding the latter is dynamic in its nature. The primary agricultural production (Agro) faced specific conditions due to significant public transfers in the form of subsidies etc., thus influencing non/directly all shareholders´ value drivers and consequently reducing the originally expected vulnerability. The authors have found that the shareholder value is not generated and distributed evenly within the Czech Agro-Food supply chain; therefore, the “scissors” are expending in favour of the Retail sector at the expense of the others, especially of the Agro sector.

Keywords

Agro-Food sector, Economic Value Added, shareholder value, supply chain.

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