INDUSTRY

The increase in industrial production in the region over the half-year compared to the corresponding period last year is 16.4 percent; output has been increased in most types of industrial activity.

In the manufacturing industry, whose share of volumes is over 80 percent, production grew by 17 percent, including in the food industry - by 8.2 percent. A significant contribution to the work of the food sector is made by such enterprises as VAT «Volynholding», «Kovelmoloko», «Rozhyshchenskyi syrzavod», «Lutsk-Fudz», «SMP», SE “Novovolynskyi oliino-zhyrovyi kombinat”, whose share of products in the industry's production is over 60 percent.

In machine building, production was increased by 32 percent, in the chemical and petrochemical industry - by 16 percent, in metallurgy and metal processing - by 13 percent.

Production volumes decreased somewhat in light industry and in the production of building materials.

AGRICULTURE

Positive trends of production growth are being maintained in the sector. Over six months, products worth over 421 million hryvnias were produced (in comparable prices of 2000), which is 4.7 percent more than a year ago.

For the 2005 harvest, almost 522 thousand hectares were sown in the region, of which over 283 thousand hectares, or 54.2 percent of the total sown area, were sown by households. Agricultural enterprises gave preference to grain crops, under which they occupied 65 percent of the sown field. The population sowed 46 percent of arable land with grains and planted almost a fifth with potatoes.

In the first half-year, commodity producers sold for slaughter about 44 thousand tons of livestock and poultry in live weight, received almost 237 thousand tons of milk and 142 million eggs. The growth in production of the main types of livestock products was 3.1-1.4 percent.

The growth of production in agro-formations is largely connected with positive trends in poultry farming. The share of poultry meat in the total volume of livestock and poultry sold for slaughter exceeded 50 percent.

The situation in milk production is also improving, with 12.3 percent more produced than last year. The main factor is a 1.2-fold increase in the productivity of cows.

In households, meat production increased by 1.6 percent, but milk and egg production decreased somewhat. The share of households in the total production of livestock products was 71, 80 and 86 percent respectively.

According to calculations, in farms of all categories as of July 1, the number of cattle was 299.6 thousand head (3.6 percent less than last year). There are 175.2 thousand cows (4.8 percent less), pigs - 306 thousand (2.3 percent less), sheep and goats - 20.7 thousand (0.5 percent more), poultry of all types - 5.9 million head (15.9 percent more). At the same time, compared to the beginning of the current year, there was an increase in the number of cattle (by 6.2 percent), pigs (by 4.6 percent), sheep and goats (by 14.4 percent) and poultry (1.6-fold). Since the beginning of the year, agricultural enterprises sold products worth 167.7 million hryvnias, which is 36.6 percent more than in the corresponding period last year — largely thanks to an increase in average sale prices.

Processing enterprises received from all categories of agricultural commodity producers in the first half-year 11.7 thousand tons of livestock and poultry and 85.8 thousand tons of milk, which is 15.5 and 18.8 percent more, respectively, than last year.

TRANSPORT AND COMMUNICATIONS

Since the beginning of the year, 501 thousand tons of cargo have been transported by road. This is somewhat less than last year. Freight turnover as a whole reached 171 million ton-kilometers and grew by 43 percent. Passenger transportation by all categories of road carriers remained almost unchanged and amounted to about 46 million passengers.

Railway stations of the region dispatched 833 thousand tons of cargo and 3 million passengers. Urban electric transport was used by 21 million citizens, of whom about half are entitled to free travel. Compared to last year, transportation volumes increased by 10 percent.

Communications enterprises are operating stably. In January - June they provided services worth over 93 million hryvnias, of which 46 million hryvnias - to the population. Compared to last year, the total value of services provided in comparable prices grew by 23 percent.

FINANCE

The financial result before taxation of business entities of the region for five months amounted to 136 million hryvnias of profit, which is 5 times more than a year ago.

It should be noted that this year most sectors of the economy of Volyn are operating profitably. The main share of the profit received belongs to industrial enterprises (121 million hryvnias). The highest positive financial results were achieved by the open joint-stock companies «Lutskyi avtomobilnyi zavod», «Volynholding», «Lutskyi pidshypnykovyi zavod».

Among the regions of the oblast, the best positive results were achieved by business entities of the city of Lutsk (99 million hryvnias) and Lutsk district (28 million hryvnias). The largest losses were incurred by enterprises and organizations of the city of Novovolynsk.

FOREIGN TRADE

According to data from the State Customs Service of Ukraine, business entities of the region in January—May exported goods worth 107 million US dollars and imported - worth 280.3 million dollars, which is 13 and 20 percent more, respectively, than in the corresponding period last year. Foreign trade operations with goods were carried out with partners from 64 countries of the world.

Exports of goods to CIS countries increased by more than two-thirds, and imports from these countries - by 14 percent, while their value equals 36.6 million and 207.9 million dollars, respectively. To other countries of the world, goods worth 70.4 million dollars were exported (3 percent less than last year), and imported - worth 72.3 million dollars (39 percent more). The main partner country of the region in foreign trade in goods is the Russian Federation.

In the commodity structure of exports, supplies of machines, apparatus and mechanical devices, timber and articles thereof, products of animal origin, and petroleum products predominated. In imports, the main share fell on energy materials, oil and products of its processing, as well as vehicles, machines, apparatus and mechanical devices, polymeric materials, and finished food products.

The main exporters in the region are VAT «Lutskyi pidshypnykovyi zavod», LLC «Komo - Eksport», VAT «Lutskyi avtomobilnyi zavod», LLC «Naftosvit», which account for 44 percent of total exports.

The largest share in imports (62 percent) is occupied by goods received by LLC «Barel», «Investments Line» and VAT «Lutskyi avtomobilnyi zavod».

CONSUMER MARKET

Retail trade turnover in the first half-year amounted to 1226 million hryvnias and exceeded last year's by 20 percent.

The main share of the total volume of sales of consumer goods is formed by enterprises - legal entities engaged in retail trade and restaurant activities. They account for 59 percent of the turnover. These enterprises sold consumer goods worth over 752 million hryvnias, or 14 percent more than in the first half of last year.

In the structure of turnover, non-food goods predominate, whose share, as last year, is 57 percent. Among food products, alcoholic beverages predominate (accounting for a quarter of their total volume), confectionery, tobacco (11 percent each) and bakery (almost 7 percent) products. The share of sausage products, dairy products, meat and poultry, and non-alcoholic beverages is significant (from 5 to 3 percent). In total, these goods account for 68 percent of sold food products.

It should be noted that over 42 percent of goods sold through the retail trade network are provided by 10 enterprises of the region. In particular, VAT «Ukrnafta», «Kovelnаftoprodukt», CJSC «Ahrokontrakt», LLC «Hippo», «Mizhrehionalni resursy», «Maveks», «Nektar», ZAHSP «Volynpak», PE «Ukr-Petrol», JV «Alfa-Lutsk» with average monthly turnover volumes from 3 million to 11 million hryvnias. Overall, the volumes of goods sold by these enterprises grew by a third compared to last year's, and some of them doubled them.

Turnover per inhabitant of the region is also growing monthly. It reached an average of 120 hryvnias per month. (in the first half of last year - 91 hryvnias). Among neighboring oblasts, it is higher only for Lviv residents. By this indicator, Volyn has long occupied 10th place among the oblasts of Ukraine.

To meet the population's needs for agricultural products, markets hold a significant place. By the Central and Zavokzalnyi markets of the oblast center alone, they sold 25 million hryvnias worth, or 3 percent more than sales volumes in the corresponding period of 2004, with prices rising overall by 28 percent.

In the first half of the current year, specialized service sector enterprises received almost 313 million hryvnias of income from their sales, including 133 million hryvnias from services to the population, which is almost a quarter more than last year.

Among the regions of the oblast, over two-thirds of services sold fall on cities of oblast significance.

The largest number of services was sold by transport, post and communications enterprises, with over 40 percent of transport services and half of communications volumes formed by railway enterprises and VAT «Ukrtelekom».

On average, one inhabitant of the region received services from specialized enterprises worth 127 hryvnias in January-June 2005.

PRICES AND TARIFFS

According to data from the State Statistics Committee of Ukraine, the consumer price index in the country in the first half-year was 106.4 percent (in the corresponding period last year - 104.4 percent).

In the region in January—June, the growth rates of retail prices for food products (5.7 percent) outpaced the growth of prices (tariffs) for non-food goods (4.3 percent) and services (3.1 percent). Among food products, price growth was observed for almost all surveyed goods.

The increase in retail prices for non-food goods was primarily due to the rise in price of gasoline and diesel fuel, since they occupy a significant part in the structure of sales of non-food goods.

LABOR MARKET AND WAGES

The registered labor market in the first half-year was characterized by some decrease in the number of applications to the state employment service on employment matters, an increase in the number of persons employed with the help of this service, and a reduction in the number of unemployed. In particular, since the beginning of the year over 30 thousand applications have been recorded, about 18 thousand Volyn residents were employed, the number of unemployed at the end of June was less than 25 thousand, or 4.1 percent of the region's working-age population, against 5.5 percent in the neighboring Rivne oblast, 3.6 - Lviv, 3 - in Ukraine.

Seven out of ten registered unemployed received unemployment benefits. Over the half-year, 17 million hryvnias were paid out, or monthly on average 140 hryvnias to each unemployed person who received it.

Average earnings of Volyn residents compared to the first half of last year grew by almost 38 percent and equaled 516 hryvnias. The June salary grew by 9 percent compared to May and reached 604 hryvnias. In 45 percent of business entities, the salary in June did not exceed the subsistence minimum for able-bodied persons (453 hryvnias). At the same time, as of July 1, 13.7 million hryvnias remained unpaid, which is equivalent to a tenth of the June wage fund.

PAYMENT FOR HOUSING AND COMMUNAL SERVICES

The problem of debts for housing and communal services owed by the population is not decreasing in the region. If over the half-year about 80 million hryvnias were paid in total, which is 103 percent of accrued amounts, then almost 60 million still remains a debt of previous years. As a result, the housing and communal services of the region have significant wage arrears to their employees. In Lutsk alone they amount to almost 700 thousand hryvnias or an average of 611 hryvnias per employee.

Over six months, 16.5 thousand families were granted subsidies to reimburse payment for housing and communal services (a third less than last year). The average size of the granted subsidy per family compared to the previous year decreased from 43 to 31 hryvnias.

DEMOGRAPHIC SITUATION

The demographic situation remains problematic in the region, as in the country as a whole. Over five months, the number of Volyn residents decreased by 2 thousand. At the same time, the region has one of the highest birth rates in the state and a somewhat lower than average in Ukraine death rate. Today, 1042 thousand people live in the territory of our region.

CRIME SITUATIONThe number of crimes registered by internal affairs bodies in the first half-year increased by 2.8 percent compared to the analogous period last year and amounted to 4489 cases. An increase in crimes was recorded in almost all regions of the oblast, except for the cities of Novovolynsk, Kovel, Kamіn-Kashyrskyi and Kivertsivskyi, Lutsk and Kovel districts.