Economic analysis of spring soft wheat seed production in North Kazakhstan region

Abstract

In today’s reality, the agriculture plays a very important role not only in achievement of sustainable economic development, but also in solving the global problem of hunger and ensuring the state independence from external food supplies. All above makes this industry an important factor for consideration in many countries. In this paper, the authors placed the emphasis on the economic analysis of individual crops in the industry, namely spring wheat in the North Kazakhstan region. Thus, the purpose of the work was to calculate the economic feasibility of growing this crop. The analysis was the main method during writing process. Besides, statistical research methods played an important role, as well as comparison, modelling, induction, and other methods. The article demonstrated that the cost of elite seed production is much higher than the cost of commercial grain crops per hectare. At the same time, the seed production helps to increase profitability per hectare; however, it can be observed the opposite trend in terms of efficiency per unit of capital invested, which was higher for producers of commercial grains than seeds. With that, the specifics of seed production impose higher requirements on agricultural producers in terms of energy efficiency, namely the provision of machine-tractor fleet and fleet of agricultural machinery, storage facilities, as well as equipment for cleaning grain. The paper draws conclusions about the decision for entrepreneurs to invest in the production of one or another type of product. The article brings new knowledge for understanding the peculiarities of economic development in Kazakhstan, especially in regional aspect and sector specifics

Keywords

• kazakhstan’s economy
• regional development
• agriculture
• entrepreneurship
• investment