Over the past year, more than a thousand agricultural companies have ceased their activities. According to the general director of the Ukrainian club of agricultural business Oleg Khomenko, this trend is due to the fact that the business no longer has reserves and resources at all. He told about this in a comment to the journalist UNN.
Due to the full-scale war, the loss of arable land in Ukraine is more than 20%, so many companies have stopped their activities. In addition, the companies have been taking into account the situation with the export of our products, in particular regarding world prices and the logistics component, which lead to large losses for agricultural companies, for two years now
According to him, if you look at the gross harvest of 2021, it is at an unattainable level in the current conditions.
"Now we have a projected gross harvest of about 70 million tons, which is 10 million tons less compared to last year. Of course, this is also affected by agroclimatic conditions, given the drought this spring," he adds.
The head of the UKAB notes that the closure of agricultural companies will be noticeable for the domestic consumer:
We understand that these are lost jobs, unpaid taxes and wages for shareholders. For the rural population and local budgets, these are serious losses.
He says that there are several reasons for the closure of agricultural companies: optimization of work, namely due to the reduction of their administrative divisions and mobilization measures, because now there is a very strong shortage of personnel.
We are all well aware that a business will not go bankrupt in one year. All of them had savings that were formed in previous years, and they made it possible to hold out for two years. To date, it has become clear to everyone that there are absolutely no reserves and resources. And there are no resources to stabilize your financial condition either. In my opinion, this year will be indicative from the point of view of the sustainability and functioning of the agricultural business. It will show how much farmers were able to adapt to the realities
Recall
Since the beginning of the full-scale invasion, the number of business closures has increased in the legal sphere and agricultural enterprises. The highest levels of business closures were recorded in Kiev and the region, Dnepropetrovsk, Lviv, as well as Odessa, Zaporozhye and Kiev regions.