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Financial position of food industry in vojvodina during transition period

Author

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  • Veljko VUKOJE

    (Department of Agricultural Economics and Rural Sociology, Faculty of Agriculture, University of Novi Sad, Novi Sad, Serbia)

  • Ivan DOBRENOV

    (Department of Agricultural Economics and Rural Sociology, Faculty of Agriculture, University of Novi Sad, Novi Sad, Serbia)

Abstract

The paper analyzes the main indicators of the economic position of companies in the field of food industry in Vojvodina. The examined nine-year period coincides with the final stage of the ownership transformation in the Republic of Serbia. Given the length of the examined period, a considerable devaluation of the national currency (60.6%) and a high inflation rate (125.7%), all values are shown in Euros. The increasing business activity in the period of interest is not accompanied by the appropriate financial effects. Food industry enterprises achieved a positive financial result for most of the years in the given period, but with modest profit rates (0.15-3.18%). Net working capital covers only 42.5% in average of the base stock, indicating an unfavourable financial structure and serious liquidity problems. An unacceptably high level of indebtness has been achieved (58.1%), which significantly reduces financial results due to the high financing expense. A further increase of export, combined with the recapitalization by the owners and a partial refinancing of credits, is the way to the companies' financial recovery.

Suggested Citation

  • Veljko VUKOJE & Ivan DOBRENOV, 2011. "Financial position of food industry in vojvodina during transition period," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(4), pages 185-198.
    • Handle: RePEc:caa:jnlage:v:57:y:2011:i:4:id:99-2010-agricecon
    DOI: 10.17221/99/2010-AGRICECON
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    References listed on IDEAS

    as
    1. Peter Walkenhorst, 2001. "The Geography of Foreign Direct Investment in Poland's Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 71-86, September.
    2. Bojnec, Stefan & Hartmann, Monika, 2004. "Agricultural And Food Trade In Central And Eastern Europe: The Case Of Slovenian Intra-Industry Trade," IAMO Discussion Papers 14940, Institute of Agricultural Development in Transition Economies (IAMO).
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    5. repec:zbw:iamodp:92027 is not listed on IDEAS
    6. M. Putićová & J. Mezera, 2008. "Food industry in the Czech Republic - with regard to labour force development," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(6), pages 286-292.
    7. Peter Walkenhorst;, 2001. "Determinants of foreign direct investment in the food industry: The case of Poland," Agribusiness, John Wiley & Sons, Ltd., vol. 17(3), pages 383-395.
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