Is the aquaculture industry in the Czech Republic financially healthy? A company-level analysis

An economic evaluation of the sector at the enterprise level is important for planning policy interventions and regulatory interventions. In this article, we want to contribute to clarifying the factors causing the poor economic situation of freshwater aquaculture enterprises in the Czech Republic from 2015 to 2020. The work used annual data from standard financial statements that companies must publish. The procedures used in the assessment of the financial health of the agricultural sector were used. The relative representation of enterprises in individual categories shows the same trend for all the models used, namely a general shift towards worse financial health over time. According to all the models used, 15% of aquaculture enterprises were classified as endangered. Enterprises at risk can be characterized as micro-enterprises that are often in loss for several years and have low liquidity and high indebtedness. As a result of the increase in input prices, with the permanent stagnation of production prices, the cost increases even in prosperous enterprises. Low liquidity and the impossibility of obtaining a loan from banking institutions mean the impossibility of drawing investment subsidies and introducing innovations at these enterprises. Their further development, increase in performance and efficiency are thus difficult to implement.

Automated summary

This article aims to investigate the economic situation of freshwater aquaculture enterprises in the Czech Republic from 2015 to 2020 and identify factors leading to poor economic conditions, including continuous losses, low liquidity, and high indebtedness.