Management of determinants of production costs in the agricultural sector: a case study of Ukraine

Abstract

The purpose of the study is to model and quantify the impact of basic factors on the amount of production costs in the agricultural sector of Ukraine., as well as to substantiate directions for improving cost management efficiency based on correlation and regression analysis. The article examines the factors shaping the cost structure of agricultural enterprises using forecasting modelling. It is substantiated that the dynamics of production costs are formed under the influence of interrelated labour and production-resource factors, among which the key ones are the volume of agricultural output, average wages, employment level, and the efficiency of fixed assets utilization. It is established that the most significant positive impact on the dynamics of costs in the agricultural sector of Ukraine is exerted by production volume and average wages, whereas the return on assets produces a restraining compensatory effect. Based on the estimated model, a forecast of costs up to 2030 is carried out, which indicates the preservation of an upward growth trajectory under an inertial scenario of agricultural sector development.