Products cost of enterprises engaged in processing and preserving of fish and seafood

Information agency Credinform prepared a ranking of companies engaged in processing and preserving of fish and seafood in terms of products cost. Companies with the mentioned activity type and the highest volume of turnover were selected for this ranking according to the data from the Statistical Register for the latest available period (for the year 2013). The enterprises of the Top-10 were ranked by increase in the share of manufactured products cost in the company's turnover.

The cost price is a cost (expenses) for production, works or services. It is an important qualitative indicator reflecting how much the company costs on production and marketing. The lower is the cost price, the higher are profit and profitability. Normative values for this indicator are not specified. For evaluating the effectiveness of cost management, it is necessary to look through the percentage of the cost price in the company's turnover.

The average cost price share in the turnover of the Russian fish processing enterprises exceeds 70%. That shows high expenses on production and can be an indicator of an outdated industrial base.

Last year, the Russian enterprises engaged in processing and preserving of fish and seafood, have faced with serious problems due to the introduction of the food embargo. According to the experts, only in the Kaliningrad region about 40% of raw material for canned fish were delivered from countries, came under the Russian countersanctions. Thus, enterprises urgently had to find new suppliers of raw materials. The already difficult situation was exacerbated by serious competition from foreign producers, since the import of canned fish wasn’t under the embargo.

As a reminder, in August 2014 Russia imposed an embargo on the supply of food products from the EU, US, Australia, Canada and Norway. In particular, the ban was imposed on the import of fish. However, Moscow restrictions were not applied at canned fish.

Products cost of the major enterprises engaged in processing and preserving of fish and seafood in Russia, Top-10

The Top-3 is presented with the following companies: OPEN JOINT - STOCK COMPANY PACIFIC DEPARTMENT OF FISH SURVEY AND RESEARCH FLEET TURNIF (55,6%), Ozernovsky Fish Canning Plant # 55, JSC (57,2%) and Meridian, JSC (77,9%). The companies have shown quite high values of products cost against turnover. This result demonstrates the high production costs. However, the enterprises got high and the highest solvency index Globas-i® in terms of financial and non-financial factors set; that characterizes them as financially stable.

The rest of the Top-10 companies have shown the value of the index above the average (70%), that indicates that enterprises of the industry should be more rational in approach to their own costs management to improve competitiveness.