THE DEMAND FOR DIGITAL SERVICES IN BULGARIAN AGRICULTURE: DETERMINANTS AND CHALLENGES IN FRONT OF DIGITAL AGRICULTURE

Abstract

In the present study, the aim is to determine to what extent the demand for digital services in Bulgarian agriculture is developed and what are the factors that limit this process. This analysis examines the determinants of demand as a function of the interests and attitudes of users of digital services in the agricultural sector. It is often used as a tool for analyzing different groups of users, regarding the market status of certain services, as well as for assessing their ability to influence or be influenced by the market price. In general, there is a large difference between the production and management approaches applied on large and small farms. The size of the farms and the digital technologies they use are often related to the potential of the farmer to make investments and successfully grow his business. Larger farms have easier access to finance and can very quickly implement the digital farming approach, as long as they see a sense or motive to do so. For smaller farms, digitization does not create opportunities, on the contrary, it requires additional investments that are too much for them. High start-up costs, associated in some cases with the risk of insufficient return on investment, can become a serious challenge regarding the affordability of the technological component of digital agriculture.