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24 November 2024

News

23.04.2014

Every fourth agricultural enterprise became unprofitable in 2013

Every fourth agricultural enterprise became unprofitable in 2013

By results of the financial activity of large and medium-sized enterprises of Ukraine in 2013, 24% of the total number of enterprises in agriculture have become unprofitable. In comparison with 2012, this figure has increased by 5.1 points. In money equivalent the amount of losses  increased in 2013 by nearly 3 bln UAH or 73.3% and amounted to 7 bln UAH. It was informed by the Association "Ukrainian Agribusiness Club” (UCAB).

The overall financial result of large and medium-sized agricultural enterprises before tax payment in 2013 totaled 11.6 bln UAH  than was by 39.1% less than last year. These negative trends were caused by a number of factors. In particular, the genral economic situation in the country had seriouse overall impact as well as the factors that exerted influence directly on agriculture of the country: big harvest in Ukraine and worldwide resulted into excess supply of the principle crops, and as a consequence, the purchasing prices have decreased. However, the financial results of business entities directly depend on the last ones.

Enterprises engaged in the production of food, beverages and tobacco have also showed negative trends. The financial result before tax payment decreased by 9135.1 mln UAH, which is by 1620.4 mln UAH  or 15.1% less than in 2012. The number of unprofitable enterprises increased by 2.6 points up to 38.3% of the total number of enterprises.

"The cause of the decrease in profitability was mainly in negative pricing trends in the group of cereals and legume crops that have the largest share in the structure of revenues – 39.4% of revenue in crop and livestock industries, or 51.8% of revenue in crop industry according to 2013. The profitability of crop growing fell down up to historical minimum, which is 1.7% - by 13.5 points less than in 2012" - concluded Igor Ostapchuk, the expert on agricultural markets of the Association" Ukrainian Agribusiness Club” (UCAB).

Association “Ukrainian Agribusiness Club”

3 floor, 146 Zhylianska Str.

01032 Kyiv, Ukraine

Phone/Fax: +380 44 2362097/79

 
099 272 59 30


Tetiana Kotyk 
 
 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.

 

 

 




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