Interactions between Sustainable Management and Economies of Scale

Takácsné György, Katalin

Keywords: size and efficiency, historical development, precision farming, sustainable economy, D2; L2; Q01

The three pillars of sustainability are environmental, economic and social sustainability. These three are especially relevant for agriculture. Examining the economic side at the producer level, it is a basic premise that farms must also provide at least the income needed for simple reproduction at the individual level. The examination of the issue of economies of scale appeared very early on in the operational doctrines.
The article examines the factors influencing sectoral and farm size along the economic principle of economies of scale, as well as the factors hindering and supporting the spread of precision agriculture, which is gaining more and more ground in the context of sustainability. In the section on the place of economies of scale and the development of operational science, the study attempts to summarize the international and domestic literature, without claiming to be exhaustive.
The increase in the intensity of production, the technical development of agriculture in recent decades, and the increase in the efficiency of expenditures all pose the question of the “size” and form of cooperation is needed of all round sustainable production. Precision farming has already proved its worth, under certain conditions, it is one of the technological solutions of competitiveness. The size of production alone is not the determining factor, regardless of the ownership conditions and organizational form, it can be the suitable technology of both large enterprises and small and medium-sized enterprises. In the latter case, it is important to explore all the horizontal and vertical relationships that can be used to bridge the existing economies of scale at the economic level.
The role of precision farming in sustainable development is undeniable. The shift of agriculture towards a ‘smart farm’ is an essential task for all actors in the sector. Climate-Smart Agriculture (CSA) emphasizes the need for flexible, systems-based solutions/ technologies, supported by innovative policy and funding measures.

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