Academic journal article Economics & Sociology

Ukrainian Companies of Food Industry: Investment Activity and Factors Affecting the Results

Academic journal article Economics & Sociology

Ukrainian Companies of Food Industry: Investment Activity and Factors Affecting the Results

Article excerpt

ABSTRACT. This paper analyzes the investment activity of food industry in Ukraine for 2005-2011 according to the volume of investment in fixed assets. Innovative activities of food companies are analyzed, amounts of investments in financial instruments and the basic source of investment financing are defined. Based on the analysis and synthesis of previous research the factors influencing the volume and efficiency of investment have been identified.

Keywords: investment, food industry, investment impacts.

(ProQuest: ... denotes non-US-ASCII text omitted.)

Introduction

At the current stage of development of the national economy food industry companies require sustainable development and formation of the optimal strategy based on long-term prospects for their activity. In the process of developing the strategy the investment opportunities and previous experience in the investment business should be taken into account. Although the study of issues related to investment activities of enterprises are paid attention by the scientists around the world (the list of their names is impractical within this analysis), the chosen theme is relevant due to the dynamic functioning of the environment and the need to eliminate the negative impact of factors both internal and the environment arising from changes in the conditions of the firms activity and affecting their performance.

The aim of this paper is to analyze investment activities of the food industry in Ukraine and to determine factors influencing the results. To achieve this goal the following objectives were addressed:

- investments in fixed capital, including space food business in the industry of the country were studied;

- the innovative activity of enterprises of the food industry was described;

- the sources of investment financing were defined;

- the author's classification of factors influencing the investment performance of food businesses was given.

While analyzing the stated matters the following basic methods were used: analysis, synthesis and monographic method.

The main source was the official statistical data on key indicators of socio-economic and demographic development of Ukraine. The used statistics and the size of articles limited detailed consideration of certain issues.

other results of industrial-business of enterprises many factors must be considered, including competitive products, state assets, resource efficiency, relevance of scientific and technological advancement of available technologies and

management practices. When planning activities and development strategy

the obstacles faced by the food industry in Ukraine should be taken into account, namely the fact that for typical enterprise software there is a struggle for the manufacturing process of high quality raw materials in sufficient quantities and a high degree of depreciation (in 2011 - about 45%). Table 1. Investments into fixed assets of the food industry enterprises in Ukraine, current prices Indicator Years 2011, % against The development and efficiency of the food industry is significantly influenced by real investment, which is the main object of investment at all industrial enterprises. Real investment is an investment in intangible assets (acquisition of patents and licenses, etc.) and industrial equipment (fixed and current). According to statistics, fixed capital investment (in capital construction, transport, equipment and other fixed assets)

account for about 80% of capital (real) investment funds that are invested into tangible and intangible assets in Ukraine (calculated by the author based on www.ukrstat.gov.ua). Tetiana Iackymchuk 83 ISSN 2071-789X RECENT ISSUES IN ECONOMIC DEVELOPMENT The article is divided into two parts, which highlight the investment activities of the food industry in Ukraine and impacts on the investment performance of the food industry. Investment activity of the food industry in Ukraine The effectiveness of the food industry determines

the state of food security in general and prospects of the industry, and influences the level of satisfaction of needs for food and drinks. …

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