Capital formation of livestock production enterprises in Ukraine

Animal husbandry is a strategic branch of agriculture that provides the population with valuable food products and industry with critical raw materials. One of the prerequisites for the successful functioning of livestock production enterprises is the effective formation and use of capital. This process is fundamental in times of war, as it affects the financial and economic stability of enterprises in the industry. The article describes the research results on the theoretical and practical features of the formation of the capital of livestock production enterprises based on the analysis of statistical data for 2015-2021. The main trends of changes in the balance indicators of livestock enterprises in Ukraine are determined. An analysis of the specific weight of enterprises producing livestock products in the formation of aggregate indicators of the balance sheet of agricultural enterprises of Ukraine for the studied period was carried out. The main internal and external factors of capital formation of enterprises have been established. The structure of the equity capital of enterprises in the livestock industry was studied according to the primary sources of formation. Based on the conducted research, it was established that for 2015-2021, the leading indicators of the balance sheet of enterprises of the industry increased until 2020; however, after the decrease in the economic efficiency of production in the livestock industry of Ukraine, there was a sharp decline in the value of non-current assets at the level of 12 % and a moderate decrease in the value of equity - by 6%, especially in the last year of the studied period. The structure of own capital has also worsened, in which the specific weight of reserve capital, for example, in poultry and pig breeding, has decreased to 1%, which indicates the strengthening of destructive processes in the financial stability of enterprises in the specified areas of animal husbandry. The situation is better for dairy enterprises, where a higher level of reserve capital (7%) in equity capital structure is observed. The analysis of the current liabilities of livestock production enterprises indicates a significant share of short-term loans - at the level of 30%, which, in the conditions of increased interest rates for loan capital, will potentially affect the deterioration of the financial stability of many enterprises that operate with a low level of economic efficiency. A negative phenomenon for the formation and use of capital of enterprises in the livestock industry was the strengthening of the impact of price disparity in 2020-2021, which reduced the profitability of the production of most types of products, particularly pork, poultry meat, and eggs. The decrease in the value of equity and non-current assets is significantly influenced by the material losses received during the war, which led to a reduction in the scale of production, a decrease in economic efficiency, and the cessation of enterprise activity.