News
19.04.2013
Capitalization of Ukrainian agricompanies continues decline
As of mid-April 2013 capitalization of Ukrainian agri-food companies amounted to about 5.55 billion USD, which is 12% less than in 2012. This was stated by the Association "Ukrainian Agribusiness Club" (UCAB). Experts noted a negative downward trend in stock value of domestic agricultural companies.
Capitalization of Ukrainian agro-food companies declined by 790 million USD compared to the last year. It is about 6.3 billion UAH or 30% of the profits earned in agriculture in 2012. But experts claim that the main problem is not the loss of investments for Ukrainian agricultural sector but a constant negative trend.
"For the stock market fluctuations are normal, but the capitalization Ukrainian agro-food companies in the last year (considering the interim rates in August and November) gradually declines. This is a wake-up call for all market participants, but particularly for the government, which declared the agricultural sector as of high priority. Due to adverse weather conditions, rise in prices for resources and other problems, agriculture more than ever needs support, not extra challenges. We hope that the government will retain this minimum of assistance in form of tax incentives for the industry "- the Advisor on agricultural markets of the Association "Ukrainian Agribusiness Club" Taras Vysotskyi says.
The expert says that in the past three years the maximum level of capitalization of Ukrainian agro-food companies was about 8 billion USD at early January 2011. At the same time, as of late November 2011, capitalization Ukrainian agro-food companies declined to 5.2 billion USD. One of the reasons for the sharp decrease was the introduction of export duties on grain crops and abolition of VAT refund for exports of grain and oil crops.
"These figures clearly demonstrate how ill-conceived government policy has led to substantial losses in the agrarian sector and the national economy in general. I wish that lesson was learned, and in the future the government would not make experiments with the introduction of fiscal innovations without a detailed preliminary analysis of possible economic consequences, "- Mr. Vysotskyi says.
Association "Ukrainian Agribusiness Club"
Velyka Zhytomyrska str., 20 А, office 53, Kyiv, 01001
Phone: +380 44 201-4950
Fax: +380 44 201-4951
099 272 59 30
Tetiana Kotyk
www.agribusiness.kiev.ua
The Association "Ukrainian Agribusiness Club" (UCAB) www.agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.
