A technique for the estimation of the effect of investments in the digitalisation of the dairy subcomplex entities

Abstract

The paper outlines the results of the analysis made to study the possibilities of using digital technologies to estimate the effect of investments in the digitalisation of dairy subcomplex entities. A review of academic literature revealed an insufficient number of publications on the dairy subcomplex digitalisation. The technique used to estimate the index of dairy subcomplex entities engaged the principles for constructing composite information indicators recommended by the European Commission. The proposed approach connects the system of state programmes and the digitalisation level of the dairy subcomplex for the first time. Taking into account the industry specifics, an attempt has been made to integrally estimate the digitalisation in dairy cattle breeding. It is recommended to introduce two criteria to assess the informational support level of dairy cattle breeding entities: the share and the index of dairy cattle breeding digitalisation. The correlation between the digitalization index of dairy cattle breeding and the return on equity has been established. An author's technique has been developed for a preliminary estimation of the effect of investments in digitalisation. The proposed approach develops the existing methods for estimating the effectiveness of government programs and policies, taking into account the industry digitalisation.