Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 19 ISSUE 4
Written by Glusi Ladyani MERISTICA, Jajang GUMILAR, Kusmajadi SURADI

The purpose of this paper was to find a useful correlation between the costs and the size of the economic unit involved in the agricultural input supply. This relationship was analysed in the current paper in order to verify if the the practical situation on the agricultural input market in Romania allows to perform economies of scale, according to the conditions in which the economic units are operating. The research methodology consisted of analysing the first 10 firms that are agricultural input suppliers, in correlation with another 15 firms of smaller size than the first ones. The sampling was not representative for the agricultural input supply in Romania, but it allowed to highlight the impact of economies of scale on the value of costs and the management of improving and stabilizing the position on the market of these economic actors. The obtained results showed that the agricultural input suppliers take advantage of economies of scale, but they choose to use these advantages towards securing some benefits for clients (agricultural farms), in order to maximize their market share and to consolidate their brand image.

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