Ways to optimize the prime cost of agricultural crops production – articles of expenses




After analyzing the structure of costs for grains and oilseeds production, and making rankings of individual expenditure articlesby importance, APK-Inform Agency can identify the main ways to reduce the prime cost of agricultural crops production.

Thus, the most acceptable for optimization are the costs items, which are in the group of the changeable production factors. According to the stated group structure, it includes the items, which are prior during the prime cost optimization, taking into account their share interest.

The first place traditionally belongs to the costs for mineral fertilizers application, with the share interest of 18% for grains and 17% for oilseeds from the general costs for production. According to the above stated the prior are the measures to reduce the costs of this item. The simplest decision in this case is to decrease the norms of the fertilizers application or purchasing of the cheaper fertilizers. More rational is the local application of fertilizers instead of solid application. Then, it is possible to apply the combining of the processes of the soil treatment, fertilizers application, seeds sowing and their burying into the soil per one pass of vehicle unit, which saves fuel.

More detailed data are expressed inthe percent viewby the main articles of expenditure and by their share participation in the general structure, and changes in the prime cost of the main agricultural cropsin the terms ofchanges of the production costs, are presented in "The study of profitability of agricultural crops growing in Ukraine".

You can receive all required information concerning purchasing of the full version of the study from Marketing Department of APK-Inform Agency: +38 0562 32 15 95 (ext. 115) or by e-mail: [email protected]