According to calculations of the Institute of Agrarian Economics, the profits of agricultural enterprises in 2020 will increase to UAH 58.4 billion, that is 47.7% higher than in 2019.

It was said by Yuri Lupenko, director of the National Research Center "Institute of Agrarian Economics", presenting development of "Expected indicators of production costs, profitability, profitability and profitability in agricultural enterprises of Ukraine in 2020: methods and calculations (December 2020)".

According to the academic, this result was achieved solely due to the growth of profits in crop production, which increased by 55.2%. At the same time, livestock profits decreased by UAH 2.9 billion.

The largest profits of agricultural enterprises were in the production of sunflower, estimated at UAH 21.1 billion; wheat, UAH 19.0 billion; corn for grain, UAH 11.9 billion; rape, UAH 6.6 billion; and milk, UAH 3.8 billion.

The greatest losses, the scientist noted, the enterprises of the branch received on production of eggs, 4,9 billion UAH, and also cultivation:

• cattle - UAH 1.4 billion,
• pigs - UAH 0.7 billion,
• poultry - UAH 0.35 billion,
• sugar beet - UAH 0.28 billion,
• peas - UAH 0.25 billion.

The growth of profits of agricultural enterprises was solely due to the price factor, as a result of which income and sales revenue increased, compared to 2019 by 5.1%, and in crop production, by 5.9%. At the same time, the total cost of goods sold increased by UAH 0.3 billion (+ 0.1%), while in crop production it decreased by UAH 3 billion (-1.1%).

The reduction of agricultural production in the industry by 14% did not allow to restore the level of profits in 2016-2018, when they amounted to UAH 70.8-76.4 billion. In addition, the growth of profits against 2019 was achieved mainly due to the favourable price situation in the global and domestic markets, summed up Yuri Lupenko.

Source: Institute of Agricultural Economy