The impact of transportation costs on economic performances in crop production

Abstract

Transport activity has significant implications for the other sectors' activities, including agriculture and agribusiness. Transportation costs represent a significant determinant of total operating costs, and therefore the selling price, which affects the competitiveness of products and the achieved business results. The aim of the paper is to point out the importance of respecting the financial effects of transport in the decision-making process of agribusiness management. The following methods have been used in the research: desk research, survey, direct costing method of calculation, sensitivity analysis and methods of descriptive statistics. Based on survey data conducted on farm of Central Serbia for the period 2016-2018, the paper analyzes the interdependence of transportation costs and gross margins in order to find out the factors that determine the decisions on production optimization as well as the business results of farm operations.