Economic efficiency of potato production on family holdings under market liberalization conditions

Production of potato (Solanum tuberosum L.) is one of the most significant plant production lines in Montenegro. Almost entire production takes place on family agricultural holdings. The objective of the paper is to present the significance of potato production in Montenegro determined by high cost per unit, unfavourable ratio of export and import prices (Terms of Trade) and low marketability level. Economic efficiency of production under the market liberalization conditions is presented in the calculation of potato production per ha, on family holdings in the period 2009-2011. Dependence of production from the potato purchased price in the period 2000-2012 was presented as well. Economic efficiency analysis shows increase of total costs per ha, as well as the price cost per kg of potato under the conditions of decreased yield per ha. The lowest cost-effectiveness coefficient was in 2010, when the lowest yield per ha was recorded. Sensitivity analysis of the profit made in the period 2009-2011 shows its significant oscillations depending on the increase/decrease of production volume and market price. The results of statistical analysis established the significance between production and export price.