About past, present and future of Ukraine

Main Business — In 2020, the profits of agricultural companies in Ukraine increased almost 1.5 times

Business

In 2020, the profits of agricultural companies in Ukraine increased almost 1.5 times

04 Feb, 2021
166
In 2020, the profits of agricultural companies in Ukraine increased almost 1.5 times

Share this article


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


The Odessa Journal

The Odessa Journal

more articles

Top article

The Ministry of Defense has signed a contract for the construction of a service center for repairing drones in Ukraine
War

The Ministry of Defense has signed a contract ...

Dmytro Kuleba: Ukraine and Croatia have agreed to use Croatian ports for exporting Ukrainian grain
Business

Dmytro Kuleba: Ukraine and Croatia have agree ...

New sanctions: Defence industry, political parties and individuals linked to oligarchs
Business

New sanctions: Defence industry, political pa ...

Volodymyr Zelensky: We are preparing for the next Ramstein meeting, we expect solidly grounded decisions to meet the prospects on the battlefield
War

Volodymyr Zelensky: We are preparing for the ...