Financial position of food industry in vojvodina during transition period

https://doi.org/10.17221/99/2010-AGRICECONCitation:Vukoje V., Dobrenov I. (2011): Financial position of food industry in vojvodina during transition period. Agric. Econ. – Czech, 57: 185-198.
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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.
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