Over the past 30 years, 5 of the 11 main agricultural production positions in Ukraine have become unprofitable. And it is unprofitable to produce in our country became 4 out of 6 positions of animal husbandry and one of 5 positions – crop production. Although, back in 1990, any kind of work in the agricultural sector was profitable.
Kyiv. Ukraine. Ukraine Gate – July 4, 2021 – Agriculture
According to published data from Ukrstat, the highest level of profitability of agriculture in Ukraine for the last 31 years was observed in 1992-1993, when it reached 119% and 116%, respectively. The worst years for domestic farmers came in 1996-2000, when the overall profitability of agriculture in Ukraine was negative, primarily due to livestock.
And while producers of milk and dairy products, poultry, and pigs have since been able to skillfully “enter the market” and improve the efficiency of their production, other livestock farmers in the mass of their years suffer losses.
The latest aggregate data on the profitability of production of all agricultural products in Ukraine, livestock, and crop production in the State Statistics Service were calculated for 2014, they amounted to 25.8%, 13.4%, and 29.2%, respectively. Then the calculation became impossible due to the occupation of Crimea and partly of Donbas. During all the years of Ukraine’s independence, domestic crop production was much more profitable than animal husbandry.
At its peak in 1992, crop profitability exceeded 214% and has never been negative in 31 years. Livestock breeders began to achieve positive profitability only in the mid-2000s, and in some respects their activities today, according to official data, are unprofitable.
In total, the profitability of the main positions of crop production in Ukraine in 2020 was: grain – 20% (275.1% profitability was in 1990), production of sunflower seeds – 39.4% (236.5%), sugar beets (factory) – (-) 13.5% (29.5%), potatoes – 11% (27.2%), vegetables in the open ground – 8.3% (27.6%).
But from the 6 main positions, the profitability of animal husbandry was positive in 2020 only two: “in the black” were milk producers – 20.4% (32.2% – in 1990) and the pig industry – 2.6% (20, 7%). Producers worked with negative profitability in 2020: beef – (-) 24.2% (20.6% – 1990), sheep and goat meat – (-) 39.4% %), eggs – (-) 19.2% (27.3%) and poultry meat – (-) 0.2% (17.0%).
Thus, the recent increase in prices for beef, poultry, lamb, sugar, sunflower oil, etc., is caused not only by excessive exports of these goods but also by attempts by producers to compensate for losses and reach or raise even more positive profitability. So far, the most unprofitable industry in Ukraine for farmers is the production of sheep and goat meat, the most profitable is the production of sunflower seeds, the profitability of which increased by 70% last year.
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Source: Ukrgate
