Evaluation of Effects of Investment Support in the Czech Dairy Industry

Abstract

The article deals with investment subsidies which were drawn by enterprises of the dairy industry in 2007–2013. It is a subsidy within the Rural Development Programme 2007–2013 and the National subsidies. This article aims to assess whether these subsidies have contributed to higher economic efficiency of enterprises. The impact of investment grants to economic indicators (sales, debt ratio, labour productivity and production consumption) is evaluated. 35 dairy enterprises that drew investment grants, were analyzed in total. According to the results, grants from national sources have a greater impact on the economy of businesses. National subsidies improve labour productivity, sales and production consumption. Impacts of subsidies drawn from the Rural Development Programme are less noticeable. These subsidies affect only the production consumption by its decreasing. The market situation in 2008 and 2009 also influenced the rated indicators.

Keywords

• dairy industry
• investment grants
• Rural Development Programme
• National subsidies
• economy of business
• efficiency