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Investment needs assessment of Ukrainian agricultural enterprises

Authors :
Volodymyr Ulanchuk
Olena Zharun
Sergey Sokolyuk
Svetlana Tkachuk
Source :
Investment Management & Financial Innovations, Vol 14, Iss 1, Pp 181-190 (2017)
Publication Year :
2017
Publisher :
LLC "CPC "Business Perspectives", 2017.

Abstract

Agricultural enterprises in Ukraine require a considerable investment income. The paper studies the main problems and conditions for investment into agricultural enterprises, the scope and dynamics of their investment provision. The results of agricultural enterprises activity depend directly on the state of their fixed assets. This is one of the biggest vulnerabilities of agricultural enterprises, which makes it impossible for the economy of Ukraine to demonstrate decent results. Investments should be used primarily for the development of material and technical basis of agricultural enterprises, because the fixed assets always depreciate, the term of their use in many enterprises exceeds 15 years and their number is constantly decreasing. Investment in technical provision of plant growing is necessary and attractive. Firstly, as a basis of plant growing, grain and oilseeds are always in demand at the domestic and foreign markets. Secondly, the volumes of investments are moderate compared to other investments in agriculture. In the beginning, it is sufficient to invest into the branch on average from 1 to 2 thousand US dollars per 1 hectare. The average payback period of investments is 2-4 years. Thus, in order to stimulate investments, it is vital to form a qualitatively new policy aimed at increasing investment attractiveness of agricultural enterprises.

Details

Language :
English
ISSN :
18104967 and 18129358
Volume :
14
Issue :
1
Database :
Directory of Open Access Journals
Journal :
Investment Management & Financial Innovations
Publication Type :
Academic Journal
Accession number :
edsdoj.20a609e839a14dcb9c3ed68ba8b42889
Document Type :
article
Full Text :
https://doi.org/10.21511/imfi.14(1-1).2017.04