Ukraine: increase of the rental cost for agricultural lands to make the plant growing industry unprofitable – L.Kozachenko
In case of increasing of the rental cost for agricultural lands in Ukraine, the production of domestic plant growing commodities will be almost unprofitable, declared Leonid Kozachenko, President of Ukrainian Agrarian Confederation, at the conference "AgroResources -2013” in Kiev on February 12.
According to him, in the case of increasing of the rental cost of one hectare of farmland to 1000 UAH, the profitability of crop production will maintain for sunflower seed only - at the level of 12%. If the rental cost increases to 1.5 thsd UAH per hectare - the profitability of sunflower seed growing to fall to 2%. If increasing the rental cost, the production of other types of agricultural crops will go at losses, he said.
L.Kozachenko called non-return of the VAT on exports as the other problem of the domestic plant growing industry. To date, the average losses of Ukrainian grain exporters in the sphere roughly total nearly 2 bln USD, he said.
However, the President of Ukrainian Agrarian Confederation noted the high potential of the Ukrainian plant growing industry on the increase of yield indices of agricultural crops. The growth potential of grain crops in Ukraine currently totals 8.5 t/ha, said L.Kozachenko.
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