In modern conditions of the development of competition and lack of resources the main aim of any enterprise is to ensure its 
effective functioning. In recent years the topic of essence of the category of efficiency in general, and in agrarian production in 
particular,  has  been  raised  more  often  during  the  debates  of  the  prominent  scholars.    Their  views  concerning  the  definition  of 
efficiency  as  an  economic  category  are  based  on  adequate  resources;  however  the  problem  is  that  they  are  very  different. 
Consequently, an accurate interpretation of the category of efficiency and its indicators has not been proposed in Ukraine. In this 
respect, the evaluation of the results of functioning of agrarian enterprises in modern market conditions, in our opinion, is incomplete 
and relative in nature.       
Various points of view on economic efficiency, its criteria and indicators are argued in economic literature, but the subject is 
still controversial. One of the main principles of economic management is to ensure that the process of achieving results in agrarian 
production should be correlated with the reduction of expenses per unit, and the high rate of compensation costs from its selling. In 
this regard, the essence of efficiency not only depicts the effect as a result of any action or production, but also shows if this effect is 
justified.  
Efficiency  of  production  as  an  economic  category  demonstrates  the  proficiency  of  objective  economic  principles  and  is 
reflected in the production results. Economic efficiency illustrates the final effect of human labor, means of production, as well as 
their contribution in cooperation. 
Efficiency of production is a category of expanded reproduction that characterizes a level of achievement of the main goals, 
determined  by  reproduction.  Most  of  the  economists  make  a  distinction  between  industrial-technological,  industrial-economic, 
social-economic  and  environmental-economic  efficiency.  Economic  efficiency  is  measured  by  a  comparison  of  the  final  effect 
(result) and resources in use or expenses. This is due to the fact that the results can be related to expenses and the amount of the 
resources involved in the process of production. 
The concept of economic efficiency has a fundamental significance and reflects its prominent role in the development of society 
and achievement of new goals. Notion of efficiency is seen as a real and absolute result of production, product value. There is an 
opinion, that efficiency of economic activity should be considered as a result referred to particular goals set in a sphere of production, 
division, consumption, i.e. in the process of reproduction.  
Economic investigations have established that the evolution of category of efficiency are stipulated by industrial forces and 
productive relations in society, and its criteria are determined by the content of the main economic principles. 
Summarizing  the existing  approaches to  the  definition  of  efficiency  we  can  conclude that economic  efficiency  reflects the 
positive effect of the use of means of production and human labor, a feedback based on their mutual efforts. Efficiency in field of 
agrarian production is defined as obtaining the maximum amount of products per hectare of land, from each household animal unit at 
the lowest cost of human and actualized labor. 
Therefore, the essence of efficiency of production lies in the achievment of the industrial goal at the lowest expenses. Notion of 
efficiency of production reflects a particular aspect of functioning and development of industrial relations which leads to specific 
results and expenses of social labor. 
Keywords: efficiency, efficient production, economic category of efficiency, economic effect.