Peculiarities of formation of production potential of food industry enterprises

The study aims to determine the characteristics of the production potential of food industry enterprises, assess their current state, and determine directions for increasing the efficiency of production potential in martial law conditions. The research methodology involved using existing modern scientific and empirical achievements and recommendations regarding the peculiarities of the formation of the production potential of food industry enterprises. Official statistical data were used to analyze the size and scope of production, the efficiency of using labor resources, and the volume of capital investments. The time range covered 2021-2023. Indicators characterizing the efficiency of the functioning of enterprises include the volume of manufactured and sold products, the value of which increased by 15.5% and 20.6%, respectively. The number of workers employed in the production of products tended to decrease (-6.8%). The main problems accompanying food enterprises as a result of hostilities were loss of relations with suppliers, lack of stable sales directions for manufactured products, reduction in the number of personnel due to the mobilization of part of the employees, reduction in the number of personnel due to departure abroad; instability of the credit and financial sphere (high interest rates on loans, instability of the national monetary unit); absence or instability of the supply of raw materials and materials, including gas, electricity, water; occupation of territories where enterprises operate. Despite the troubles, food industry enterprises restored the pre-war level of capital investment and exceeded it by 4.3%. The state needs to focus its efforts on the following areas: financial and credit and tax incentives and infrastructure support to increase the production potential. The following programs have already been implemented and are operating to support enterprises affected by military actions: loans for working purposes at 1% per annum; an increase in the provision of state guarantees to 80; increasing the limit under the “5-7-9%” program to 150 million hryvnias; conclusion of international trade agreements for the export of manufactured products; reduction of dependence on imported raw materials; quotas for the import of products that have a higher competitive position compared to domestic types of products; reduction of bureaucracy; referral of employees to retraining and training; stimulation of innovations, etc. Keywords: production potential, resources, size and scale of activity, food industry enterprises.

Authors

Publication Details

Journal
Ukrainian Journal of Applied Economics and Technology
Published
2024-11-27
DOI
https://doi.org/10.36887/2415-8453-2024-4-2
Primary Topic
Agriculture Market Analysis Ukraine
Type
article
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article

Peculiarities of formation of production potential of food industry enterprises

В. В. Рябенко, Oleksandr D. Balan, Yaroslav Polishko
Ukrainian Journal of Applied Economics and Technology
Agriculture Market Analysis Ukraine
article

Peculiarities of formation of production potential of food industry enterprises

В. В. Рябенко, Oleksandr D. Balan, Yaroslav Polishko
article en

Abstract

The study aims to determine the characteristics of the production potential of food industry enterprises, assess their current state, and determine directions for increasing the efficiency of production potential in martial law conditions. The research methodology involved using existing modern scientific and empirical achievements and recommendations regarding the peculiarities of the formation of the production potential of food industry enterprises. Official statistical data were used to analyze the size and scope of production, the efficiency of using labor resources, and the volume of capital investments. The time range covered 2021-2023. Indicators characterizing the efficiency of the functioning of enterprises include the volume of manufactured and sold products, the value of which increased by 15.5% and 20.6%, respectively. The number of workers employed in the production of products tended to decrease (-6.8%). The main problems accompanying food enterprises as a result of hostilities were loss of relations with suppliers, lack of stable sales directions for manufactured products, reduction in the number of personnel due to the mobilization of part of the employees, reduction in the number of personnel due to departure abroad; instability of the credit and financial sphere (high interest rates on loans, instability of the national monetary unit); absence or instability of the supply of raw materials and materials, including gas, electricity, water; occupation of territories where enterprises operate. Despite the troubles, food industry enterprises restored the pre-war level of capital investment and exceeded it by 4.3%. The state needs to focus its efforts on the following areas: financial and credit and tax incentives and infrastructure support to increase the production potential. The following programs have already been implemented and are operating to support enterprises affected by military actions: loans for working purposes at 1% per annum; an increase in the provision of state guarantees to 80; increasing the limit under the “5-7-9%” program to 150 million hryvnias; conclusion of international trade agreements for the export of manufactured products; reduction of dependence on imported raw materials; quotas for the import of products that have a higher competitive position compared to domestic types of products; reduction of bureaucracy; referral of employees to retraining and training; stimulation of innovations, etc. Keywords: production potential, resources, size and scale of activity, food industry enterprises.

Ukrainian Journal of Applied Economics and TechnologyVol. 2024(4)
Openalex Percentile: Top 61%
Agriculture Market Analysis Ukraine
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