The business climate of Ukraine's agriculture deteriorated in August 2017

This is reported by The DairyNews with reference to "UCAB".

Compared to February 2017, the assessment of the current business situation has deteriorated critically, however, the business prospects have diminished insignificantly. A comparison with the results of August 2016, when the level of the business climate rose rapidly, also indicates a rather low assessment of the business climate in Ukraine in August 2017

 

Polls indicate a high confidence of producers in their own management capabilities. In particular, the presence of high-level equipment and equipment has a positive impact, while macroeconomic conditions have a negative impact on the business climate of farmers in Ukraine.

 

The results of the latest study show a negative assessment of agrarian entrepreneurs in the north-eastern regions of Ukraine at a level of only 8.1 points. The best assessment of the business climate was provided by agricultural producers in the central regions - 17.0, southern - 21.6 and western - 24.9 points. The difference in respondents' responses may be due to agro-climatic conditions, which are not the same among the regions.

 

Concerning the scale of production, the lowest estimate of the business climate was observed for manufacturers from the land bank less than 5000 hectares - 1.7 points. Respondents with a land bank more than 5000 hectares estimated the business climate at the level of 17.4 points, individual producers - 16.6 points, and holdings - 36.0 points. Agrarian holdings, which mainly specialize in the production and export of cereals, are much better adjusted to the business climate in comparison with small business structures.

 

Manufacturers of livestock products evaluated the business climate negatively - at 4.4 points. This may be due to the need for long-term investment. At the same time, producers of crop production estimated the business climate at the level of 20.0 points. One of the explanations may be favorable conditions on international markets for Ukrainian exporters.

 

The clock cycles of the agrarian business climate is new for a series of these reports. He demonstrates the assessment of the current business situation by the agrarians and their expectations for the next year. The indicator for August 2017 indicates a deterioration in the business climate, but the business expectations of producers remain in the positive segment.

 

Reference: The agrarian business climate was created and represented by the joint efforts of the German-Ukrainian agrarian-political dialogue (APD) and the Association of Ukrainian Agribusiness Club (UCAB) on the basis of the German general business climate (ifo-Geschäftsklimaindex). Surveys and data analysis is carried out three times a year and determine the subjective perception by Ukrainian producers, both the current business situation and the business perspective for one year. ABA can vary from 100 (very low score) through 0 (neutral) to +100 (very high). In this release, technical changes are presented. So, only one, the main question, is reflected on all the graphs. More detailed questions about macroeconomic conditions remain to explain the main issue. In this context, the level of the Agrarian business climate has significantly increased (on the graph).