EFFICIENCY OF SUGAR BEET GROWERS AND PROFITABILITY OF SUGAR BEET IN CZECH REPUBLIC

The paper focuses on evaluation of economic efficiency of sugar beet growers in the Czech Republic in 2013 and on international comparison of yields and costs of sugar beet. The results are based on a sample survey of product costs and yields of agricultural commodities which is carried out annually by the Institute of Agricultural Economics and Information, and international Agri bechmark Cash Crop network. Economic efficiency is evaluated using Data Envelopment Analysis method (DEA). Relatively high selling price and direct payments have been the main causes of favourable profitability of sugar beet in the Czech Republic since 2011. However, DEA results show a potential in efficiency improvement of direct material costs, direct wages and quality of sugar beet (and its selling price) in the group of inefficient growers. Import of sugar substitutes and the strategies of multinational alliances, which control the European sugar market seem to be the main threats for the Czech market. The main opportunities for Czech sugar beet growers are investment subsidies into modernisation and improvement of labour productivity stemming from the new Rural Development Programme and from the Support and Guarantee Fund for Farmers and Forestry (PGRLF).