Profitability development of key Czech agricultural commodities in the period 2002-2006

Abstract

The paper examines development of Czech agriculture through profitability of the 10 chosen most important commodities (wheat, barley, rapeseed, sugar beet, potatoes, dairy cows - milk, cattle fattening, suckler cows, pigs fattening, poultry - fattening broilers) in the time horizon 2002-2006. The aim of the paper is to give an objective information about the influence of agrarian policy on the development of agricultural commodities, especially with reference to the comparison of changes in the pre-accession (period I = 2002-2003) and in the after-accession of the CR to the EU (period II = 2004-2006). This deals with the economic position of Czech producers related to the most considerable commodities of Czech agriculture through 2 indicators, profitability without supports (R-S) and profitability with supports (R+S). There was proved that profitability R+S in the period I was positive for most plant commodities while it was negative for most animal commodities. In connection with the membership of the CR in the EU, agricultural supports significantly increased for nearly all commodities as the consequence of applying the Common Agricultural Policy (CAP) on Czech agriculture. Therefore, there were monitored in the period II important positive changes of the indicator R+S for most commodities. For the average of the Czech Republic, there were obtained the following values of R+S in the period I, resp. period II: wheat 2.6%, resp. 24.9%, barley 27.7%, resp. 39.8%, rapeseed -18.0%, resp. 23.4%, sugar beet 9.1%, resp. 41.4%, potatoes 10.5%, resp. 2.5% (the only one case of decrease), milk 2.1%, resp. 8.5%, fattening cattle -14.6%, resp. -3.6%, suckler cows -8.8%, resp. 19.7%, fattening pigs -5.5%, resp. -1.2%, fattening broilers -2.9%, resp. 0.1%.

Keywords

• common agricultural policy
• agricultural commodities
• economics
• costs
• producer prices
• profitability
• supports