COST OF AGRICULTURAL PRODUCTION: A KEY DETERMINANT OF COMPETITIVENESS IN MODERN CONDITIONS

Issue № 6, 2026, article № 7, pages 72-83

Section: Investment and innovation in agriculture

Language: Russian

Original language title: СЕБЕСТОИМОСТЬ СЕЛЬСКОХОЗЯЙСТВЕННОЙ ПРОДУКЦИИ: КЛЮЧЕВОЙ ДЕТЕРМИНАНТ КОНКУРЕНТОСПОСОБНОСТИ В СОВРЕМЕННЫХ УСЛОВИЯХ

Keywords: COSTS, EXPENSES, INNOVATION, COMPETITIVENESS, COST OPTIMIZATION, FULL COST, AGRICULTURAL PRODUCTS, TECHNOLOGY, DIGITALIZATION

Abstract: This article analyzes the structure and evaluates the cost of agricultural production in determining the competitiveness of Russian agricultural producers at the regional level. It is established that studying the relationship between costs and competitiveness is an important area of modern economic science. The cost of agricultural production is a key determinant of financial stability and profitability, and its formation influences the competitiveness of agricultural producers in both domestic and foreign markets. The authors analyze the dynamics of the cost structure in agricultural organizations in the region, identifying the specifics of their formation, key trends, and consistent patterns in their transformation. It is revealed that farmers' costs for purchased goods and services are constantly increasing, with two key items dominating the structure of material costs: feed costs and other material costs. In the structure of material costs of agricultural organizations in the Penza Region, as well as in agricultural organizations in Russia as a whole, the majority of costs are accounted for by items such as mineral fertilizers, seeds, plant protection products, and other material costs. The share of key cost items in the region has been declining over the last year of the study period, but production volumes are stable, and some are even growing (milk and poultry), indicating the use of innovative and digital technologies in production. It has been established that traditional approaches to cost reduction have largely exhausted their potential, spurring the implementation of modern, comprehensive cost optimization methods through innovation, improved technological processes, and cost management systems in a resource-constrained environment. This comprehensive approach, supported by government programs, not only reduces costs but also enhances the overall competitiveness of organizations over the long term.

Authors: Zaruk Natalia Fedorovna, Romantseva Julia Nikolaevna