Impact of the insurance costs on the competitiveness of food industry enterprises of Ukraine in the context of the food market security

Abstract

Introduction. The study was carried out to analyze insurance costs and to determine the trends, patterns and impact of the insurance costs on the competitiveness of food industry enterprises in the context of the food market security. Materials and methods. The theoretical background of the article is based on critical literature review of the insurance costs, food market security and competitiveness. It were used the methods of comparative, statistical analysis of data, systematization, scientific interpretation; generalizations and comparisons the indicators of market share and capacity, profitability and efficiency, insurance costs and correlation-regression analysis methods and indicators. Results and discussion. The investigated FIEs do not violate the norms of the current antimonopoly legislation of Ukraine. The highest values of all three types of profitability were related to the PJSC "Karlsberg Ukraine". It was determined the rates of change in insurance costs for the selected list of food industry enterprises. The results shows wide range of values from -99.6 % (PJSC "The house of vintage cognacs "Tauria"), to 881.4 % (PJSC "Pologovsky Oil Extraction Plant") in 2014-2015. The research results show that the largest share of insurance costs related to the PJSC "Pologovsky Oil Extraction Plant" in 2016 and equal to 2.173%. Consequently, the cost of insurance insignificantly changes the production costs and, accordingly, moderately affect the formation of profits for FIEs. The analysis shows a direct proportional relationship between ROE and insurance costs for PJSC "Karlsberg Ukraine", and the inverse proportionality between ROS and insurance costs for PJSC "Obolon" and Private JSC "Kyiv Confectionary Factory "Roshen".The correlation-regression analysis of profitability and insurance costs for FIEs shows that only three coefficients of determination correspond to the value of a regressive model of satisfactory quality: r2=0.717 (ROE, PJSC "Karlsberg Ukraine"); r2=0.838 (ROS, PJSC "Obolon"); r2=0.664 (ROS, Private JSC "Kyiv Confectionary Factory "Roshen"). The lower values (the interval r2for 0.1-0.5) of the determination coefficient are fixed in nine cases: within the limits of the minimum value r2=0.103 for ROS to the PJSC "Pologovsky Oil Extraction Plant", and to the maximum r2=0.496 for ROE to the PJSC "Kyivkhlib. Conclusions. The hypothesis about the existence of a dependence between the competitiveness of FIEs and the portion of money allocated to FIEs for insurance is confirmed only for FIEs with high efficiency of doing business.