Coface: less food firms can handle the burdens

The number of insolvency proceedings increased by more than thirty percent in the first quarter of 2011 among the food companies, compared to the same period of last year, while the national average increase was “only” 25 percent – shows the analysis of Coface Hungary Credit Insurance Company.

“Significant working capital deficiency, high raw material prices, frequent late payments, widespread vendor credits, significant seasonality” – Kárpáti Gábor, CEO of Coface Hungary lists the problems, that the food companies have to contend every day. An increasing number of them are not able to handle these problems: the insolvency index of food companies increased by nearly thirty percent in the first quarter of this year, compared to the same period of 2011.