IMPORTANCE OF CAPITAL INTENSITY IN HORTICULTURE

• Main Authors: Olga Stefko, Barbara Ciesielska
• Format: Article
• Language: English
• Published: University of Life Sciences in Poznań 2013-09-01
• Series: Journal of Agribusiness and Rural Development
• Subjects: horticulture; capital intensity
• Online Access: http://www.jard.edu.pl/tom29/zeszyt3/art_14.pdf

Although horticulture is an integral part of agriculture it has several distinguishing characteristics resulting from its potentially higher profitability and different use of the basic production factors, such as land, labour and capital. The common features of horticultural farms are the high level of real fixed assets in the structure of assets and high capital intensity of production. Therefore, the main goal of the article is to define the importance of the capital intensity in horticulture production. An effective tool to calculate the suitable for the individual needs of real fixed assets level should facilitate permanent monitoring of the production in terms of the economic calculation in order to optimize the range of the producers’ investment so that they could avoid a financial loss.