Algorithm for Selecting Alternative Strategies for Sustainable Intensification of Agricultural Enterprises

Abstract

Growing food shortage encourage businesses to increase yields, mainly through extensive capacity building. However, this path often leads to a negative impact on the environment and does not consider social issues. Increasing yields requires the implementation of strategies for sustainable agricultural development and intensification of production. Selecting such strategies at the level of agricultural enterprises requires their classification and analysis. The purpose of the study is to group agrarian enterprises in Kharkiv Oblast and identify clusters with high potential for the implementation of alternative strategies for sustainable intensification. Based on the concept proposed by J. Pretty, the study classifies enterprises by the ecological and economic, socio-economic and environmental dimensions on the basis of such factors as crop diversity, depreciation, organic fertiliser application, labour costs, use of mineral fertilisers, fuel materials per hectare of land. Data from 514 agricultural production enterprises in Kharkiv Oblast in 2019 and 510 enterprises in 2020 were used for the categorisation. The data were processed through a cluster analysis method using specialised Microsoft Excel and SPSS21 software. The study presents an algorithm for choosing strategies for sustainable development and sustainable intensification of agricultural enterprises based on cluster analysis. Classification of enterprises by the level of diversity of agricultural crops, application of organic fertilisers, labour costs, application of mineral fertilisers, depreciation level, fuel materials per hectare of land allowed identifying agricultural enterprises that have the greatest potential to implement sustainable intensification practices from the proposed alternatives. The introduction of integrated pest management tools has been suggested for companies that consume significant amounts of mineral fertilisers and fuels and lubricants. The practical significance of the findings lies in providing recommendations for selecting sustainable intensification strategies depending on the level of enterprise yields, the amount of mineral fertiliser and fuel and lubricants used, the diversity of crops, etc