|dc.description.abstract||The article analyzes the activities of the food industry in a fragile economic environment. Effective, high-performance, dynamically growing food industry is a priority in ensuring economic security of the state and achieving high national competitiveness.
Food industry of the country has extremely favorable conditions for its effective development. Food industry of Ukraine belongs to more than twenty sub-sectors, the most important of them are sugar, meat, fluor, cereals, wine, milk processing, canning and others.
The aim of the article is the food industry activities analysis in unstable business environment during recent years in Ukraine. Tasks are set to achieve goal : to examine the General state of the food industry; to identify the main trends accompanying the development of the food industry; to identify and justify the ways of stabilizing production and increasing the export potential of Ukrainian industry .
According to the analysis of the food industry , production it decreased in 2016 comparing to 2011 by 4063,1 thousand tons. The volume of white crystalline sugar, flour, bread and bakery production increased. Production of unrefined sunflower oil, poultry.
The index of industrial production in 2016 compared to 2011 decreased by 23.8%, and food production – by 19.6%. Due to rising labor costs through adverse weather conditions, also negatively affected by rising prices for seeds, fertilizers and fuel.
The decrease in production volumes of the food industry in led to a decrease in the volume of its implementation. Due to rising food prices, decreasing incomes, unfavorable economic conditions.
The calculations allow us to conclude that in 2016 in comparison with 2011 average producer prices grew in all product groups. Prices most increased on such products: butter and hard cheese, semi-smoked sausages, sausages, milk and dry cream, beef and pork. Due to the increased cost of production, reduction in livestock and rising prices for these products on world markets.
Identified the following major changes relative to the state of activity of food industry enterprises in the market for 2011–2016: the increase in production volumes, although theseasonally adjusted value of this indicator is observed a small decrease; the increase in demand for products in domestic and foreign markets.
Capital investment in the food processing sector decreased by 882,0 mln. The share of investment in the food sector amounts to 12.9% of the total. The deterioration of the economic situation reduces the growth rate of investments in the food industry.
In 2016, the share of the food industry that made a profit reached 73,6. Despite progress in increasing profitability, overall financial performance in 2016 is unprofitable, namely: - 15750,2 mln. This is due to a decline in food production, rising prices of basic food products and reduced welfare.
We believe that the positive factors in the development of the food industry are: well-developed production infrastructure industry, high market capacity due to internal and external demand, favorable geographical location and climatic conditions, low competition, and others. Negative or unfavorable factors in the development of the food industry at the macro level are: lack of political commitment, low international ratings of the country, lack of regulation of land relations, a significant level of bureaucracy and corruption, unstable legislation, low Executive discipline in government and management, a significant rate of inflation, low purchasing level, poor infrastructure of the financial market, economic instability, high tax burden and others. It is proved that effective enterprises of the food industry is able to provide rapid growth in all sectors that will lead to higher level of its investment attractiveness.||uk