DETERMINANTS OF PROFITABILITY OF ENTERPRISES OF MEAT INDUSTRY IN POLAND

The aim of the study was to determine the strength and direction of influence of individual factors on the
return on equity of the enterprises of the meat industry in Poland in 2008–2012. A detailed analysis covered
86 enterprises engaged in slaughtering and processing of pork and published financial reports in the analysed
period. The profitability rate of the studied enterprises are identified based on the return on equity ratio. Du
Pont analysis was used in order to determine the reasons for the change in structural system use. The research
showed that the meat sector is characterized by relatively low profitability. This is primarily due to high
production costs and low selling prices. The economic situation of the enterprises is affected by the high fragmentation
of the industry and limited specialization. An additional difficulty are the emerging market affairs
that reduce consumer confidence in meat products. Effective management of the enterprise of meat industry
requires, therefore, successful analysis of indicators of profitability.