INPROFORUM 2013

Comparison of financial situation of the biodynamic farms in the CR
Marie Pechrová

Language: en
Last modified: 2013-10-29

Abstract


The aim of the paper is to assess the economic performance of the biodynamic farms in the Czech Republic and to find the potential for their further development. Biodynamic agriculture was founded by Rudolf Steiner in 1924 as a response to the excessive use of chemicals in agriculture. Current biodynamic agriculture is a form of organic farming that in addition sees the farm as an organism which should be self-sustained. Therefore, it is important to analyse whether the biodynamic farms are able to achieve satisfactory profitability, liquidity, maintain favourable capital structure and activity. Three indicators from each area were selected and displayed in spider graph. This enable to compare farms to the branch average and to each other.

We chose four biodynamic farms in the Czech Republic. The data were obtained from Albertina database (managed by company Bisnode Česká republika, a .s.) and from Commercial register and the collection of documents, which includes bookkeeping information from balanced sheets and profit and loss statements of the legal persons. We concluded that the best performance had Farm number 1, which indicators values are closest to the branch average. Other farms had problems with too extreme values of some indicators.

The research is financed from internal grant No. 11110/1312/3160 - “Analýza vybraných ukazatelů biodynamického zemědělství – komparace ve světovém měřítku” of the Internal Grant Agency of the Faculty of Economics and Management, Czech University of Life Sciences Prague.


Keywords


biodynamic farm, financial analysis, spider analysis, economic performance

Full Text: PDF