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28 March 2024

News

04.04.2014

Increasing of profitability in agricultural industry in 2014 is not expected - UCAB

Increasing of profitability in agricultural industry in 2014 is not expected - UCAB

According to the State statistics service of Ukraine, the level of profitability of agriculture in 2013 was 11.3%, that is by 8.7 points less than in 2012. In particular, profitability of crop production dropped by 11 points and also amounted to 11.3%. According to forecasts of Association "Ukrainian Agribusiness Club” (UCAB), in 2014, rising in profitability of growing the major agricultural crops in not expected because of the difficult economic situation in the country, rising prices for material and technical resources, regulatory barriers and the lack of funding and Governmental support.

Increased investment in agricultural production in 2013, has allowed to increase yield of crops in average on 8.63 centner/ha, or on 26.3%. Thanks to this, farmers could reduce the production cost of cereals and leguminous crops on 12.1% up to 1065,7 UAH/ t, compared with the previous year. However, despite the reduction of costs, in 2013 the profitability of growing grains and legumes still got down by 13.5 points up to 1.7%, the minimum score in the history of Ukraine.

The main cause of such low financial results is the falling down the purchase prices. The average price of one ton of grain crops in 2013 was about 1299.8 UAH/t, that is by 16% less than in 2012.

The most "unprofitable" regions for grain and leguminous crops production are: Autonomous Republic of Crimea, Ivano-Frankivsk and Lviv regions with indicators of profitability -17.7%, -12.2% and -10.4% respectively. Despite the low indicators, the aforementioned regions have a share of only 4.2% of total gross yield. Negative profitability was showed by 13 administrative-territorial units, which produced 37% of the gross yield.

The most "profitable" regions are Mykolaiv, Volyn and Odessa regionsa with indicators of profitability of 10.1%, 8.1% and 7.4% respectively. The share of their production makes up 11.7% of total gross yield. In general, 12 regions had positive profitability in 2013, they produced 63% of the gross yield.

«Зважаючи на девальвацію гривні в період посівної кампанії, а відповідно, і зростання вартості основних виробничих засобів, витрати на  весняно-польові роботи цього року ще більше зростуть, тому в 2014 році  не доводиться розраховувати на суттєве зростання рентабельності виробництва зернових та зернобобових культур», - констатує експерт аграрних ринків асоціації «Український клуб аграрного бізнесу» (УКАБ) Ігор Остапчук.

"Considering the hryvna devaluation during the sowing campaign and, respectively, rising costs of basic production assets, the expenditures for the spring-field works will increase even more this year, so in 2014 we will not have to rely on significant growth in profitability of grain and leguminous crops " - says Igor Ostapchuk, Expert on agricultural markets of the Association "Ukrainian Agribusiness Club (UCAB).

Association “Ukrainian Agribusiness Club”

3 floor, 146 Zhylianska Str.

01032 Kyiv, Ukraine

Phone/Fax: +380 44 2362097/79

 
099 272 59 30


Tetiana Kotyk 
 
 The Association "Ukrainian Agribusiness Club" (UCAB) www.agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.

 





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