ECONOMIC EFFICIENCY OF ORGANIC AGRICULTURE IN KAZAKHSTAN

organic agriculture; economic efficiency; organic farming; agroindustrial complex; agricultural enterprises

Abstract

In recent years, Kazakhstan, as well as around the world, has noticeably increased interest in the development of organic agriculture, contributing to the creation of high margin agricultural production and improving the quality of economic growth in the agro-industrial complex. This work is aimed at assessing the economic efficiency of agricultural enterprises with organic farming in Kazakhstan. It also seeks to analyze the viability of organic farms and their contribution to sustainable agriculture and the environment. At the same time, one of the objectives of the article is to analyze whether the latest databases of organic farms and their structure contribute to achieving the above goals. In order to comprehensively assess economic efficiency, the production base (equity, assets, liabilities) was first analyzed. Secondly, the profit indicator was used to monitor various types of profit and selected financial ratios. Data on organic farms have been taken since 2009. Primary data (for organic and traditional farms) were taken on the basis of materials from farms engaged in organic farming. For comparison, both the database of farms and the annual statistical reviews of the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan were used. Kazakhstan belongs to the countries that have reserves of land for cultivation. In the 90s of the last century, due to changes in the economic and social structure in the village, 1/3 of the arable land was transformed into a fallow and pastures. Now, taking into account the accumulated experience and new technologies, it is possible to revive part of the abandoned lands into arable land at a safe ecological level. Lands with higher fertility potential can be used for organic farming. To assess the economic and financial situation of agricultural enterprises, the following financial coefficients were adopted: return on assets, return on equity, liquidity, debt, interest coverage and total asset turnover.