Browsing by Subject "profitability"
Now showing items 1-11 of 11
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(2013)The aim of this study was to find out how crop rotations with legumes in comparison to monocultures affect nutrient runoff from cultivation and profitability. We looked at five period monocultures of wheat, barley and oats. In the rotations considered two periods were replaced by red clover-grass or pea-horse bean mixtures. Results from rotations were compared with the ones from monocultures. Rotations were studied in private and social optimum and the case of common agricultural policy. According to the results it is possible to reduce nitrogen runoff with the use of legumes in crop rotations. Reductions were achieved by two means: lower average nitrogen runoff of legumes and residual effect from biologically fixed nitrogen which allows reducing fertilization in the next period. The average reductions in nitrogen runoff were higher in rotations based on pea-horse bean due to its lower optimal fertilization rate compared to red clover-grass. However, average per grain runoff was reduced more with red clover-grass due to its greater residual effect. Average nitrogen runoff was reduced in all cases expect for red clovergrass based rotations in social optimum where the variation in buffer strips made the difference. Private and social profitability were the highest for red clover-grass and adding it to grain monocultures increased both private and social profits. If the demand as fodder was too low cultivation of red clover-grass was unprofitable. Pea-horse bean had the lowest profitability and adding it to grain monocultures reduced profits.
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(2009)The global warming imposes limitations on timber harvesting. As a result the seasonal variation of logging is expected to increase. At the same time the growth of Russian wood tariff will reduce the import. Together, these will increase the demand for domestic wood. Due to own entrepreneurial work and investments in agricultural machinery, several farms have the opportunity to provide seasonal timber harvesting services as contractors. With timber harvesting services these farms could increase the machinery utilization and save in the fixed costs. The growth of the machinery utilization rate will improve the profitability of the timber harvesting of contractors. The aim of this study was to analyze the profitability of seasonal timber harvesting contractors by employing data of the Finnish bookkeeping farms. The profitability was worked out by the income and costs of timber harvesting and also by the entrepreneur's input of labour. This study also aimed to find out the adventages of synergy in labour and common use of machinery in timber harvesting and farming. In addition this study aimed at to define the influence of the timber harvesting services on the farms total profitability, the seasonal variation of family labour and the use of total working hours. The source material of this study was the data of eight bookkeeping farms collected by MTT Agrifood Research Finland. These eight farms had carried on timber harvesting in the years 2005 and 2006. The income statement and the balance sheet of logging were calculated by using a mail inquiry and recorded financial statements of the farms. On the basis of the income statement and the balance sheet, the essential parameters of the profitability were calculated. The proportional profitability of the timber harvesting services was measured by the profitability ratio. The profitability ratio was calculated by dividing Family Farm Income (FFI) by the sum of costs for family factors, i.e. the wage claim and the interest claim of timber harvesting. The profitability ratio of logging was 1,69 in year 2005 and 1,19 in year 2006. Due to small data the skewness of results was often rather high. The results of the study, however, showed that for farms the timber harvesting services are a good way to increase the utilization rate of the agricultural machines and to improve the profitability of business. Providing timber harvesting services could also balance the seasonal variation of family labour and the use of total working hours of the family farm.
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(2019)The study examines forest owners’ views on the profitability of forestry and their economic objectives. The aim is to find out how forest owners determine and evaluate profitability, and how the methods differ from those used by business enterprises. In addition to profitability perceptions, the study examines forest owners’ willingness to store carbon in their forests. The data for the study were collected by semi-structured interviews, which were undertaken with nine forest owners in spring 2019. The interviewees had participated in a training program called Metsänomistajan Talouskoulu that provides the forest owners with an opportunity to develop one’s understanding in forest management. Also, as the aim was to examine forest owners’ attitudes towards a hypothetical carbon offset program, the forest owners were asked to state their willingness to accept (WTA) presented in a questionnaire form. The results show that forest owners display diverse attitudes and the views on profitability differ from one owner to another. Even though the forest owners are familiar with different profitability assessment methods, utilizing them in one’s actions is relatively rare. While forest owners are generally interested in biodiversity protection, more information regarding carbon sequestration programs is still needed. According to the results, the actual participation rate would depend on factors such as the protocol requirements and the compensation amount. As a whole, majority of forest owners require financial incentives in order to participate in carbon sequestration programs.
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(2013)Leys productivity decreases over time in Finland. After three years the yield is usually low. Most of the finnish leys are renovated less than five years old. Leys suffer from winter, foraging and grazing and they become thinner. Grass height and density correlate relatively well to the yield. Leys which are thinned out can be fixed with overseeding. The object of this study was to find out how grass overseeding affects to the growth and assess how profitable it is with grass roller. One year field experiment was made. It’s goal was to test the features of the Kivi-Pekka grass roller. Effects to the growth were also studied but the significance was considered low because of the one year test. Overseeding field experiment was made in 3, 5 and 8 years old leys. Yield was cut two times. The profitability of the grass roller was estimated with calculations. Yields can be maintained with overseeding and new plants can be added to the growth. Overseeding succeed better with clover than grasses referring to the literature. The density of old growth and moisture are main features which affect to succes in overseeding. Seeds need warmth, space for growing, moisture and good soil contact to germinate properly. There were only minor differences between the overseeding techniques and results. Surface seeding without harrowing or rolling wasn’t very effective. There were no significant differences between the yields of different treatments in field experiment. Newly sown seeds probably lost in growth competition. Yield value, renovating costs and seed cost had major effect to the profitability of overseeding. According to the calculations grass rollers profitability increased when overseeded area increased and the age of leys become longer.
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(2013)This thesis studies the economically optimal timing of thinnings and final harvest on Costa Rican Tectona grandis plantations. Consequently this thesis studies the profitability of the plantations and makes a comparison to previous studies. Optimization is based on programming with AMPL with Knitro optimizing software. The objective function used is the Faustmann formula. Different rates of interest are used. The ecological functions used for the modeling were obtained from previous studies by Pérez and Kanninen (2005a). The economic data such as planting and thinning costs and log prices were obtained from a T. grandis plantation specialist. The results of the study show that the optimal harvesting regime in T. grandis plantations differs from what is suggested in literature. The main findings are that the optimal rotation length is shorter and both timing and intensity of the thinnings vary depending on the rate of interest used. In addition the maximized bare land values under optimal management regimes are notably higher than bare land values under previously suggested management regimes. The management regime is highly sensitive to the rate of interest used. The management regime is less sensitive to the changes in price than expected. This thesis suggests that the initial density of 816 ha-1 trees results into higher bare land values than 1111 ha-1 trees . However, the difference is minor and possible increase in silvicultural costs is not considered. In addition a simple test is carried out to see the possible effects on heartwood proportion growth to the optimal management regime. The shortcomings and possibilities to improve the model are discussed. It is noted that the price data for T. grandis is not coherent, and that the ecological model could be improved in order to increase its accuracy.
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(2019)The construction industry together with the use of buildings generates a significant amount of the European Union’s greenhouse gas emissions and uses vast amounts of energy, materials and water. Increasing wooden multistory construction (WMC) could be a way to enhance the sustainability of the construction sector, since studies have shown that the lifecycle carbon dioxide emissions and energy-use are smaller in wood-framed buildings than in corresponding buildings built with concrete. Several national and multinational authorities have set targets for increasing the share of wood in construction to decrease the environmental impact of the construction sector, but the share of WMC has increased rather slowly despite the political support. According to previous research, the reasons for the slow growth of the industry include for example path dependencies of the construction sector (i.e. that past events affect future decisions and events), attitudes and lack of knowledge. This thesis aims at increasing the knowledge of the profitability of WMC by finding out the perceptions of WMC experts on the current cost level in WMC, discovering factors that affect the profitability and market share of WMC and finding ways to enhance the profitability of WMC. This study is qualitative and was conducted using semi-structured theme interviews. Six professionals of the WMC industry were selected using purposive sampling and interviewed in 2017. The main criterion in the selection process was that the interviewees are in a decision-making, senior level position in their company and have prior experience about WMC. The results of this study indicate that WMC is currently more expensive than building with concrete. According to the results, the main causes for the higher costs are lack of knowledge, low number of actors, costs caused by planning and difficulties in tendering. However, WMC industry professionals believe that the profitability of WMC will increase in the future and that the market share of WMC will grow. Based on the results, the best ways to increase the profitability of WMC are learning from repeated projects, product development, utilizing industrial construction, cooperation with other companies and open dialogue with public administration. Furthermore, the professionals emphasized that wood should become a genuinely competitive construction material and that wooden construction’s competitive advantage should not be dependent on support from politicians, municipalities or city planning.
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(2019)The construction industry together with the use of buildings generates a significant amount of the European Union’s greenhouse gas emissions and uses vast amounts of energy, materials and water. Increasing wooden multistory construction (WMC) could be a way to enhance the sustainability of the construction sector, since studies have shown that the lifecycle carbon dioxide emissions and energy-use are smaller in wood-framed buildings than in corresponding buildings built with concrete. Several national and multinational authorities have set targets for increasing the share of wood in construction to decrease the environmental impact of the construction sector, but the share of WMC has increased rather slowly despite the political support. According to previous research, the reasons for the slow growth of the industry include for example path dependencies of the construction sector (i.e. that past events affect future decisions and events), attitudes and lack of knowledge. This thesis aims at increasing the knowledge of the profitability of WMC by finding out the perceptions of WMC experts on the current cost level in WMC, discovering factors that affect the profitability and market share of WMC and finding ways to enhance the profitability of WMC. This study is qualitative and was conducted using semi-structured theme interviews. Six professionals of the WMC industry were selected using purposive sampling and interviewed in 2017. The main criterion in the selection process was that the interviewees are in a decision-making, senior level position in their company and have prior experience about WMC. The results of this study indicate that WMC is currently more expensive than building with concrete. According to the results, the main causes for the higher costs are lack of knowledge, low number of actors, costs caused by planning and difficulties in tendering. However, WMC industry professionals believe that the profitability of WMC will increase in the future and that the market share of WMC will grow. Based on the results, the best ways to increase the profitability of WMC are learning from repeated projects, product development, utilizing industrial construction, cooperation with other companies and open dialogue with public administration. Furthermore, the professionals emphasized that wood should become a genuinely competitive construction material and that wooden construction’s competitive advantage should not be dependent on support from politicians, municipalities or city planning.
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Production of nettle (Urtica dioica), environmental and economic valuation in conventional farming (2019)Agricultural systems hold great potential in contributing greenhouse gas mitigation measures globally. Crop diversification, perennial vegetative cover and soil conservational measures are highlighted in order to develop agricultural production in a sustainable way. Increasing climate related public concern has created a demand for sustainable materials for manufacturing industries. Nettle (Urtica dioica) has been proven to hold economic and ecological advantages and great commercial potential. Nettle is a perennial low input crop with multiple end uses within harvest offering an attractive crop for farmers. The crop has been historically used in industrial scale however, current nettle production in agricultural scale is marginal despite its positive characteristics. Research on nettle’s commercial potential has been conducted in various industries. Lack of farmers has left results idle and commercial potential unachieved. This study uses basic management accounting practices in order to find the break-even points and profitability of the production in Finnish conventional farming framework. The production information is gathered from various international projects and is used in order to assess the profitability of nettle production and expand the assessment to evaluate production’s environmental benefits. For a comparison, similar assessment is performed for a conventional crop rotation consisting an oilseed crop, wheat and grass. In the chosen 4-year setting, the nettle production proves more expensive majorly due to first year’s economically non-viable production. Nettle’s low input use during the yield years and predictable long term yield output is likely to reduce unit costs over time. Nettle’s production cost of dry biomass is 0,29 euros per kilogram and break-even price after subsidies is 0,16 euros for a kilogram, similar to wheat. Nettle’s low input use and relatively large, annual 8000kg fresh yields indicate the production could turn profitable with comparably low prices. Environmentally, after the first year nettle creates an annual 1,3 ton carbon sink despite conventional fertilizer use and machinery work done of field.
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Production of nettle (Urtica dioica), environmental and economic valuation in conventional farming (2019)Agricultural systems hold great potential in contributing greenhouse gas mitigation measures globally. Crop diversification, perennial vegetative cover and soil conservational measures are highlighted in order to develop agricultural production in a sustainable way. Increasing climate related public concern has created a demand for sustainable materials for manufacturing industries. Nettle (Urtica dioica) has been proven to hold economic and ecological advantages and great commercial potential. Nettle is a perennial low input crop with multiple end uses within harvest offering an attractive crop for farmers. The crop has been historically used in industrial scale however, current nettle production in agricultural scale is marginal despite its positive characteristics. Research on nettle’s commercial potential has been conducted in various industries. Lack of farmers has left results idle and commercial potential unachieved. This study uses basic management accounting practices in order to find the break-even points and profitability of the production in Finnish conventional farming framework. The production information is gathered from various international projects and is used in order to assess the profitability of nettle production and expand the assessment to evaluate production’s environmental benefits. For a comparison, similar assessment is performed for a conventional crop rotation consisting an oilseed crop, wheat and grass. In the chosen 4-year setting, the nettle production proves more expensive majorly due to first year’s economically non-viable production. Nettle’s low input use during the yield years and predictable long term yield output is likely to reduce unit costs over time. Nettle’s production cost of dry biomass is 0,29 euros per kilogram and break-even price after subsidies is 0,16 euros for a kilogram, similar to wheat. Nettle’s low input use and relatively large, annual 8000kg fresh yields indicate the production could turn profitable with comparably low prices. Environmentally, after the first year nettle creates an annual 1,3 ton carbon sink despite conventional fertilizer use and machinery work done of field.
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The role of employee and customer satisfaction in explaining profitability in Finnish grocery retail (2020)The relationship between employee job satisfaction and customer satisfaction and the impact of these measures on the profitability of a company has been studied extensively. It has been shown that for companies with high levels of job satisfaction, customer satisfaction can be higher compared to companies with lower levels of employee job satisfaction. Similarly, previous works have documented that customer satisfaction can improve the profitability of a company. Furthermore, some scholars have found that job satisfaction enhances customer satisfaction while some have found an impact with opposite direction. This Master’s thesis was conducted with the aim to find out how job satisfaction, customer satisfaction and profitability are related in the Finnish grocery retail industry. The empirical part of the study consists of analyses of employee satisfaction and customer satisfaction surveys that were conducted by third parties before this master thesis was started. These surveys were combined and matched with profitability data, where operating margin was used as a proxy for profitability. This combined data is based on 374 Finnish supermarket grocery stores which means approximately one third of all stores in this category. As the sales of supermarkets is together nearly one half of the Finnish grocery sales, is this study representing about one sixth of all grocery purchases of Finns. The study applied the service-profit chain model (Heskett et al., 2008) as a conceptual framework. The model considers the interrelationships between internal service quality of the company, job satisfaction, retention of employees, productivity of employees, external service value, customer satisfaction, customer loyalty, revenue growth and profitability. The main research method applied was qualitative comparative analysis (Fs/QCA). The results suggest that the internal service quality of the company under investigation has an impact on the job satisfaction of employees. Job satisfaction improved when the employees experienced their job interesting and felt that the work they do is important. In addition, especially the work atmosphere but also leadership and good work conditions positively influence job satisfaction. According to this study, job satisfaction did not, however, have a direct impact on customer satisfaction, efficiency or profitability of the company. Customer satisfaction increased customer loyalty as expected. In light of this study, and for the specific context investigated, it seems possible by the focal company to positively affect employee job satisfaction by supporting a good work atmosphere. Although this research found no robust evidence on the relationships between job satisfaction and customer satisfaction, job satisfaction and efficiency of the company nor job satisfaction and company profitability, it is notable that the analyses gave some indication that work atmosphere, leadership and good work conditions might have a positive impact on financial performance of the focal company. These are the same factors that were highlighted as drivers of job satisfaction. Thus, the inter-relationship between these concepts should be further explored in the future.
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The role of employee and customer satisfaction in explaining profitability in Finnish grocery retail (2020)The relationship between employee job satisfaction and customer satisfaction and the impact of these measures on the profitability of a company has been studied extensively. It has been shown that for companies with high levels of job satisfaction, customer satisfaction can be higher compared to companies with lower levels of employee job satisfaction. Similarly, previous works have documented that customer satisfaction can improve the profitability of a company. Furthermore, some scholars have found that job satisfaction enhances customer satisfaction while some have found an impact with opposite direction. This Master’s thesis was conducted with the aim to find out how job satisfaction, customer satisfaction and profitability are related in the Finnish grocery retail industry. The empirical part of the study consists of analyses of employee satisfaction and customer satisfaction surveys that were conducted by third parties before this master thesis was started. These surveys were combined and matched with profitability data, where operating margin was used as a proxy for profitability. This combined data is based on 374 Finnish supermarket grocery stores which means approximately one third of all stores in this category. As the sales of supermarkets is together nearly one half of the Finnish grocery sales, is this study representing about one sixth of all grocery purchases of Finns. The study applied the service-profit chain model (Heskett et al., 2008) as a conceptual framework. The model considers the interrelationships between internal service quality of the company, job satisfaction, retention of employees, productivity of employees, external service value, customer satisfaction, customer loyalty, revenue growth and profitability. The main research method applied was qualitative comparative analysis (Fs/QCA). The results suggest that the internal service quality of the company under investigation has an impact on the job satisfaction of employees. Job satisfaction improved when the employees experienced their job interesting and felt that the work they do is important. In addition, especially the work atmosphere but also leadership and good work conditions positively influence job satisfaction. According to this study, job satisfaction did not, however, have a direct impact on customer satisfaction, efficiency or profitability of the company. Customer satisfaction increased customer loyalty as expected. In light of this study, and for the specific context investigated, it seems possible by the focal company to positively affect employee job satisfaction by supporting a good work atmosphere. Although this research found no robust evidence on the relationships between job satisfaction and customer satisfaction, job satisfaction and efficiency of the company nor job satisfaction and company profitability, it is notable that the analyses gave some indication that work atmosphere, leadership and good work conditions might have a positive impact on financial performance of the focal company. These are the same factors that were highlighted as drivers of job satisfaction. Thus, the inter-relationship between these concepts should be further explored in the future.
Now showing items 1-11 of 11