An economic prognostic study to examine the productivity of agricultural SMEs of Central Europe during the COVID-19 crisis
Abstract
In 2020, the COVID-19 pandemic disturbed the world's Agri-businesses. Several economies are attempting to demonstrate attempts to maintain agribusiness, the agriculture industry, and marketplaces, but distribution networks, access to markets, and affordable farm goods are still vulnerable. The poor and various disempowered populations, particularly those with lower buying power, have been harmed by the COVID-19 outbreak. This study examines the productivity of Central Europe's agricultural SMEs during the COVID-19 pandemic. A predictive model between independent and dependent factors was used to determine and forecast the index or risk for future agricultural SMEs' functioning. The Central European agricultural SMEs' performance indicators were used, such as agricultural output, production of agriculture goods and services, vegetable and horticultural products, fixed capital consumption, agriculture determinants' actual income index, absolute net agriculture business income index, and net agricultural entrepreneurial income. Our results reveal pre and post-COVID-19 agribusiness analyses and their implications for food distribution and sustainability. Our findings also revealed a widespread influence of COVID-19 on Central European areas. The study findings can help agricultural enterprises and policymakers manage the COVID-19 outbreak by providing essential recommendations and consequences.
Keyword : agri-businesses, pandemic, agricultural output, SMEs
How to Cite
Imran, A., Sufyan, A., Tajammul, A., Gavurová, B., & Novák, P. (2023). An economic prognostic study to examine the productivity of agricultural SMEs of Central Europe during the COVID-19 crisis. Business: Theory and Practice, 24(2), 425–437. https://doi.org/10.3846/btp.2023.17548
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Lanz, B., Dietz, S., & Swanson, T. (2018). Global economic growth and agricultural land conversion under uncertain productivity improvements in agriculture. American Journal of Agricultural Economics, 100(2), 545–569. https://doi.org/10.1093/ajae/aax078
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Susilastuti, D. (2018). Agricultural production and its implications on economic growth and poverty reduction. European Research Studies Journal, 21(1), 309–320. https://doi.org/10.35808/ersj/949
Tarawneh, R. A. (2021). The role of agricultural policies in jordan to mitigate the effects of COVID-19 on the agricultural sector. Journal of Agricultural Science, 13(9), 171. https://doi.org/10.5539/jas.v13n9p171
Teignier, M. (2018). The role of trade in structural transformation. Journal of Development Economics, 130, 45–65. https://doi.org/10.1016/j.jdeveco.2017.09.002
Tleuberdiyeva, S. S., Moldasheva, A. B., Alpysbayeva, A. K., & Oleinik, L. V. (2021). Economic mechanisms of agricultural production growth. Bulletin of “Turan” University, 2, 114–120. https://doi.org/10.46914/1562-2959-2021-1-2-114-120
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Bustos, P., Garber, G., & Ponticelli, J. (2020). Capital accumulation and structural transformation. Quarterly Journal of Economics, 135(2), 1037–1094. https://doi.org/10.1093/qje/qjz044
Cassidy, E., & Snyder, A. (2021). Map of the month: How many people work in agriculture? https://blog.resourcewatch.org/2019/05/30/map-of-the-month-how-many-people-work-in-agriculture/
Dagevos, H., & de Lauwere, C. (2021). Circular business models and circular agriculture: Perceptions and practices of Dutch farmers. Sustainability, 13(3), 1–15. https://doi.org/10.3390/su13031282
Darnhofer, I. (2020). Farm resilience in the face of the unexpected: Lessons from the COVID-19 pandemic. Agriculture and Human Values, 37, 605–606. https://doi.org/10.1007/s10460-020-10053-5
Dašić, B., Trklja, R., & Milosavljević, V. (2020). Contribution of agriculture to the economic development of Serbia. Ekonomski Signali, 15(2), 1–14. https://doi.org/10.5937/ekonsig2002001D
David, O. O., & Grobler, W. (2019). Agricultural production in South Africa: Information and communication technology (Ict) spillover. International Journal of eBusiness and eGovernment Studies, 11(2), 17–41. https://doi.org/10.34111/ijebeg.20191126
Galanakis, C. M. (2020). The food systems in the era of the coronavirus (COVID-19) pandemic crisis. Foods, 9(4), 523. https://doi.org/10.3390/foods9040523
Garnett, P., Doherty, B., & Heron, T. (2020). Vulnerability of the United Kingdom’s food supply chains exposed by COVID-19. Nature Food, 1, 315–318. https://doi.org/10.1038/s43016-020-0097-7
Gossett, S. (2021). From high-tech greenhouses to cloud seeding, here’s how agricultural robots are helping farmers fill labour shortages and our supermarket shelves. https://builtin.com/robotics/farming-agricultural-robots
Gullickson, G. (2021). How the coronavirus pandemic will accelerate digital agriculture. Digital tools are more important than ever for farmers to track production and financial metrics. Successful Farming.
Hobbs, J. E. (2020). Food supply chains during the COVID-19 pandemic. Canadian Journal of Agricultural Economics/Revue Canadienne D’agroeconomie, 68(2), 171–176. https://doi.org/10.1111/cjag.12237
Hrybau, A., Hryshanava, V., Witkowska-Dąbrowska, M., & Świdyńska, N. (2019). Agricultural production volume in Poland and in Belarus and its prospects. Olsztyn Economic Journal, 14(4), 397–406. https://doi.org/10.31648/oej.4934
Hu, L., Gao, J., Yao, L., Zeng, L., Liu, Q., Zhou, Q., Zhang, H., Lu, D., Fu, J., Liu, Q.S., Li, M., Zhao, X., Hou, X., Shi, J., Liu, L., Guo, Y., Wang, Y., Ying, G. G., Cai, Y., & Jiang. G. (2021). Evidence of foodborne transmission of the coronavirus (COVID-19) through the animal products food supply chain. Environmental Science & Technology, 55(5), 2713–2716. https://doi.org/10.1021/acs.est.0c06822
Inusa, B. M., Daniel, P. C., Dayagal, D. F., & Chiya, N. S. (2018). Nigerian economic growth and recovery: Role of agriculture. International Journal of Economics & Management Sciences, 7(2), 1–5. https://doi.org/10.4172/2162-6359.1000512
Key, N. (2019). Farm size and productivity growth in the United States Corn Belt. Food Policy, 84, 186–195. https://doi.org/10.1016/j.foodpol.2018.03.017
Kurdyś-Kujawska, A., Strzelecka, A., & Zawadzka, D. (2021). The impact of crop diversification on the economic efficiency of small farms in Poland. Agriculture, 11(3), 1–21. https://doi.org/10.3390/agriculture11030250
Laborde, D., Martin, W., Swinnen, J., & Vos, R. (2020). COVID-19 risks to global food security. Science, 369(6503), 500–502. https://doi.org/10.1126/science.abc4765
Lanz, B., Dietz, S., & Swanson, T. (2018). Global economic growth and agricultural land conversion under uncertain productivity improvements in agriculture. American Journal of Agricultural Economics, 100(2), 545–569. https://doi.org/10.1093/ajae/aax078
Leduc, S., & Liu, Z. (2020). The uncertainty channel of the coronavirus. In Federal Reserve Bank of San Francisco Economic Letter, 2020(07), 1-05. https://doi.org/10.24148/wp2021-03
Lehikoinen, E., Kinnunen, P., Piipponen, J., Heslin, A., Puma, M. J., & Kummu, M. (2021). Importance of trade dependencies for agricultural inputs: A case study of Finland. Environmental Research Communications, 3(6), 1–12. https://doi.org/10.1088/2515-7620/ac02d0
Lakner, S., Kirchweger, S., Hoop, D., Brümmer, B., & Kantelhardt, J. (2018). The effects of diversification activities on the technical efficiency of organic farms in Switzerland, Austria, and Southern Germany. Sustainability, 10(4), 1–18. https://doi.org/10.3390/su10041304
Lazíková, J., Lazíková, Z., Takáč, I., Rumanovská, L., & Bandlerová, A. (2019). Technical efficiency in the agricultural business – the case of Slovakia. Sustainability, 11(20), 1–17. https://doi.org/10.3390/su11205589
Liem, A., Wang, C., Wariyanti, Y., Latkin, C. A., & Hall, B. J. (2020). The neglected health of international migrant workers in the COVID-19 epidemic. The Lancet Psychiatry, 7(4), 20. https://doi.org/10.1016/S2215-0366(20)30076-6
Loizou, E., Karelakis, C., Galanopoulos, K., & Mattas, K. (2019). The role of agriculture as a development tool for a regional economy. Agricultural Systems, 173, 482–490. https://doi.org/10.1016/j.agsy.2019.04.002
Michler, J. D. (2020). Agriculture in the process of development: A micro-perspective. World Development, 129, 1–17. https://doi.org/10.1016/j.worlddev.2020.104888
Murugesan, A., Ramasamy, K., Aravind, P., Bathri Narayanan, V., & Daniel Raja, J. (2021). A systematic survey of e-commerce applications with Blockchain in agro sector. In 2021 7th International Conference on Advanced Computing and Communication Systems (ICACCS), 2021, 1199–1204. https://doi.org/10.1109/ICACCS51430.2021.9441973
Pacheco, J., Ochoa-Moreno, W. S., Ordoñez, J., & Izquierdo-Montoya, L. (2018). Agricultural diversification and economic growth in Ecuador. Sustainability, 10(7), 1–17. https://doi.org/10.3390/su10072257
Kouakou Kouakou, P.-A. (2020). Agricultural productions and its implications on economic growth in ivory coast: The use of the econometric approach. Applied Economics and Finance, 7(4), 126. https://doi.org/10.11114/aef.v7i4.4913
Rasskazova, A., & Sinits, Y. (2019). Prediction of agricultural land use. IOP Conference Series, 350(1). https://doi.org/10.1088/1755-1315/350/1/012068
Riabchyk, A., Babicheva, O., Nahorna, O., Korchynska, O., & Bilousko, T. (2021). Ensuring the marketing activities of agricultural enterprises: Strategic and tactical decisions. International Journal of Agricultural Extension, 9(4), 71–79. https://doi.org/10.33687/ijae.009.00.3723
Sents Bausch, N. (2021). Post-Covid-19 pandemic: What’s it mean for agriculture? Successful Farming. https://www.agriculture.com/news/business/post-covid-19-pandemic-what-s-it-mean-for-agriculture
Shabanov, V. L., Vasilchenko, M. Y., Derunova, E. A., & Potapov, A. P. (2021). Formation of an export-oriented agricultural economy and regional open innovations. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1–27. https://doi.org/10.3390/joitmc7010032
Sihlobo, W. (2021). Agriculture after Covid-19. https://www.bangkokpost.com/business/1904870/agriculture-after-covid-19
Stanojević, J., Radivojević, V., & Stanišić, T. (2021). Forecasting the main structural changes in agriculture of the Republic of Serbia. Ekonomika Poljoprivrede, 68(3), 759–772. https://doi.org/10.5937/ekoPolj2103759S
Stephens, E. C., Martin, G., Wijk, M. V., Timsina, J., & Snow, V. (2020). Impacts of COVID-19 on agricultural and food systems worldwide and on progress to the sustainable development goals. Agricultural Systems, 183, 102873. https://doi.org/10.1016/j.agsy.2020.102873
Suh, D. H., & Moss, C. B. (2021). Examining the input and output linkages in agricultural production systems. Agriculture, 11(1), 1–13. https://doi.org/10.3390/agriculture11010054
Sulistyowati, L., Novitasari, R., & Trimo, L. (2020). Structural transformation of the West Java economy and its agriculture. IOP Conference Series: Earth and Environmental Science, 466(1), 1–10. https://doi.org/10.1088/1755-1315/466/1/012005
Susilastuti, D. (2018). Agricultural production and its implications on economic growth and poverty reduction. European Research Studies Journal, 21(1), 309–320. https://doi.org/10.35808/ersj/949
Tarawneh, R. A. (2021). The role of agricultural policies in jordan to mitigate the effects of COVID-19 on the agricultural sector. Journal of Agricultural Science, 13(9), 171. https://doi.org/10.5539/jas.v13n9p171
Teignier, M. (2018). The role of trade in structural transformation. Journal of Development Economics, 130, 45–65. https://doi.org/10.1016/j.jdeveco.2017.09.002
Tleuberdiyeva, S. S., Moldasheva, A. B., Alpysbayeva, A. K., & Oleinik, L. V. (2021). Economic mechanisms of agricultural production growth. Bulletin of “Turan” University, 2, 114–120. https://doi.org/10.46914/1562-2959-2021-1-2-114-120
Torrero, M. (2020). Without food, there can be no exit from the pandemic. Nature, 580, 588–589. https://doi.org/10.1038/d41586-020-01181-3
Walters, L., Wade, T., & Suttles, S. (2020). Food and agricultural transportation challenges amid the COVID-19 pandemic. Choices, 35, 1–8.
Wang, T., & Huang, L. (2018). An empirical study on the relationship between agricultural science and technology input and agricultural economic growth based on e-commerce model. Sustainability, 10(12), 1–12. https://doi.org/10.3390/su10124465
Warr, P., & Suphannachart, W. (2021). Agricultural productivity growth and poverty reduction: Evidence from Thailand. Journal of Agricultural Economics, 72(2), 525–546. https://doi.org/10.1111/1477-9552.12412
Yang, Y., Yang, L., & Liu, S. Y. (2020). Analysis of agricultural economic growth factors based on Cobb Douglas production. E3S Web of Conferences, 189, 1–5. https://doi.org/10.1051/e3sconf/202018901002
Yılmaz, A., Arıcıoğlu, M. A., & Gülnar, N. (2020). 4.0 for agriculture. European Journal of Business and Management Research, 5(3), 1–8. https://doi.org/10.24018/ejbmr.2020.5.3.364
Zhang, S., Wang, S., Yuan, L., Liu, X., & Gong, B. (2020). The impact of epidemics on agricultural production and forecast of COVID-19. China Agricultural Economic Review, 12(3), 409–425. https://doi.org/10.1108/CAER-04-2020-0055
Zsarnóczai, S. J., Popp, J., Belás, J., & Kovács, S. (2021). Developments in the income situation of the agricultural sector in the selected EU member states. Economics and Sociology, 14(1), 232–248. https://doi.org/10.14254/2071-789X.2021/14-1/15