The influence of Market Risks Upon the Agribusiness Value

Abstract
The activities of agriculture enterprises are those referred to the riskiest types of entrepreneurship, because there exists certain dependence on the risks of production activities and market risks, especially marketing and price risks, each of the above mentioned has its own specific manifestation and impact on the company value in this sector. The aim of the study is to study the origins of the market risks emergence and their impact on the cost of agribusinesses in the new business environment. Farmers do not normally pay attention to market risks and do not analyze the types of products that increase their company value. This problem can be solved by using the ABC-analysis of the agricultural product mix, the “sales as contribution to reimbursement” analysis, the introduction of a restricting system on the use of valuable natural resources and diversification. The use of economic and mathematical methods allows us to find a rational production structure of an agricultural enterprise, to calculate the optimal structure of its crop area or an area of a separate group of agricultural crops.
Description
Keywords
Agribusiness, Assessment, Diversification, Entrepreneurship, Market, Risks, Value
Citation
Riepina I. The influence of Market Risks Upon the Agribusiness Value [Electronic resource] / Inna Riepina, Nataliia Chukhraieva, Eckhard Kehrein // Management Theory and Studies for Rural Business and Infrastructure Development : scientific journal / Vytautas Magnus University Agriculture Academy ; [ed. board: V. Magnus (ed.-in-chief) et al.]. – Electronic text data. – Kaunas, 2020. – Vol. 42, № 1. – P. 35–40. – Title from screen.