The document analyzes the relationship between costs and the size of economic units that supply agricultural inputs in Romania. It examines the first 10 largest input supplier firms and compares them to 15 smaller firms. The results show that larger suppliers benefit from economies of scale but choose to pass those savings on to customers in the form of lower prices in order to gain market share and brand loyalty. While not a fully representative sample, the study highlights how scale impacts costs and allows firms to better position themselves in the agricultural input market.

1. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development
Vol. 19, Issue 4, 2019
PRINT ISSN 2284-7995, E-ISSN 2285-3952
ECONOMIES OF SCALE ON THE NATIONAL MARKET OF INPUTS
FOR AGRICULTURE
Radu-Adrian MORARU1 , Vecdi DEMIRCAN2, Andrei MELNICIUC1, Dan BODESCU1
1University of Agricultural Sciences and Veterinary Medicine Iași, Faculty of Agriculture, 3,
Mihail Sadoveanu, 700490, Iași, Romania, Phone:+40740587139, Fax +40232219175, Emails:
ramoraru@yahoo.com, andrei.melniciuc@yahoo.com, dvbodescu@yahoo.com
2Isparta University of Applied Sciences, Department of Agricultural Economics, Isparta, Turkey,
Phone:+902462118601, Fax:+902462118696, Email: vecdidemircan@isparta.edu.tr
Corresponding author: dvbodescu@yahoo.com
Abstract
The purpose of this paper was to find a useful correlation between the costs and the size of the economic unit
involved in the agricultural input supply. This relationship was analysed in the current paper in order to verify if the
the practical situation on the agricultural input market in Romania allows to perform economies of scale, according
to the conditions in which the economic units are operating. The research methodology consisted of analysing the
first 10 firms that are agricultural input suppliers, in correlation with another 15 firms of smaller size than the first
ones. The sampling was not representative for the agricultural input supply in Romania, but it allowed to highlight
the impact of economies of scale on the value of costs and the management of improving and stabilizing the position
on the market of these economic actors. The obtained results showed that the agricultural input suppliers take
advantage of economies of scale, but they choose to use these advantages towards securing some benefits for clients
(agricultural farms), in order to maximize their market share and to consolidate their brand image.
Key words: economies of scale, input suppliers, agriculture

2. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development
Vol. 19, Issue 4, 2019
PRINT ISSN 2284-7995, E-ISSN 2285-3952

3. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development
Vol. 19, Issue 4, 2019
PRINT ISSN 2284-7995, E-ISSN 2285-3952

4. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development
Vol. 19, Issue 4, 2019
PRINT ISSN 2284-7995, E-ISSN 2285-3952

5. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development
Vol. 19, Issue 4, 2019
PRINT ISSN 2284-7995, E-ISSN 2285-3952

6. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development
Vol. 19, Issue 4, 2019
PRINT ISSN 2284-7995, E-ISSN 2285-3952