Tomashevska Alona, Lecturer of the Economic Subject Series Board College of Chernivtsi Yuriy Fedkovych National University, Chernivtsi, Ukraine

ORCID ID: 0000-0001-7839-5004
e-mail: tomashevska777@gmail.com

Source’s Analys of the Investment Activities Financing of the Food Industry

Abstract. The expansion of integration processes sets a task of maintaining the competitive position for domestic food producers, which requires enhancement of investing activities in the modern economic environment. The choice of investment projects of food industry enterprises in Ukraine is limited by available financial resources; this fact, in particular, impedes resolution of the major problems in the industry under discussion. The research of the dynamics of capital investments in Ukraine’s food industry enterprises in 2015 – 2018 shows that their amount increased by 7,742.5 million UAH in 2016 compared to 2015, and there was a tendency to decrease by 2,363.4 million UAH in 2017 compared to 2016. However, in 2018 the volume of investments into the fixed assets of the food industry enterprises increased almost twice compared to the previous period that is by 11,285.2 million UAH, which testifies to intensification of updating of material and technical resources of the Ukrainian foodstuff, drinks and tobacco enterprises. Therefore, the dynamics of investment volume of food enterprises during the period under study is unstable. As of today, the main source of investing activities financing in the field of food industry is own funds of enterprises. It was researched that 91.9% of capital investments was financed at the expense of own funds of Ukrainian food industry enterprises in 2018. Bank loans and other loans for financing capital investments of food industry companies make up to 8.1% of the total, of which 20.1% are loans from foreign banks. With consideration of current interest rates use of loaned funds appears to be ineffective for many enterprises; that is why attraction of foreign investments is one of appropriate sources of investing activities financing. It is established that from 2015 to 2018 inclusive, the highest growth rate of foreign direct investments in the food industry of Ukraine was in 2017 when their volume increased by 234.1 million USD compared to 2016. During the period under study, the main countries to make foreign direct investment in the food, beverage and tobacco industry in Ukraine were: the Netherlands, Cyprus, the United Kingdom and Belize. Reasonable choice of investments is namely of great importance for improvement of their economical, technical and raw material security; effectively invested funds are the key of an enterprise development in the long run.

Keywords: investing activities; capital investments; financial provision; funding source; enterprises; food industry; foreign investments.

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