Financial efficiency of the industry producing fodder in comparison with other food industry sectors

Abstract

Efficiency, as a universal and comprehensive measure of management efficiency, may be referred both to a single enterprise, branch of industry, and the entire economy. The feed industry is a branch of the food industry, which differs greatly from its other sectors. Its specific character results from the generation of products, which are not directly consumed by humans, but are used to feed animals-both pets and farm animals, as a result satisfying human needs. Additionally, enterprises in the feed industry are to a greater extent exposed to the risk of the effects of natural factors than it is the case in other branches of the economy. The multitude of specific conditions influencing the feed industry sectors is reflected in its financial situation, first of all efficiency. The aim of the study was to assess financial efficiency in feed industry enterprises in Poland in the years 2011-2015 and showing its position in relation to the entire food industry sector. The study was conducted based on unpublished data of the Main Statistical Office (GUS). Variation in financial efficiency in individual branches of the food industry sector was assessed using a synthetic measure constructed using the classic TOPSIS method. These analyses indicate relatively good financial efficiency in a group of enterprises producing animal feed and fodder, although it varied in the class system. Generally higher efficiency was recorded for enterprises producing pet food.

Application of Canonical Variate Analysis to Compare Different Groups of Food Industry Companies in Terms of Financial Liquidity and Profitability

“…The juxtaposition of these industries allowed, at the same time, one to indicate relations between liquidity and profitability in different groups of economic entities (group of enterprises), whose common stakeholder is an agricultural farm (Figure 1). A study by Florek and Czerwi ńska-Kayzer [40] showed that the selected branches in the years studied were not characterized by high variability in their financial situation. Using the TOPSIS method, the analyzed companies had comparable results of financial situation assessment in different years of the studied period.…”

Globalization of the Market for Vegetable Protein Feed and Its Impact on Sustainable Agricultural Development and Food Security in EU Countries Illustrated by the Example of Poland

“…Hence, an analysis was carried out of the financial situation of operators owned by transnational corporations active in the Polish feed market. The financial condition of these undertakings was found to be satisfactory, as reflected by the synthetic indicator of profitability, which was 0.638 in 2015, compared to the average level of 0.585 for the whole Polish food industry [47]. In 1H 2019, animal feed producers recorded a net revenue from product sales of PLN 8.55 billion, i.e., 2.7% more than in 1H 2018.…”