Ukraine: how to increase profitability of oilseeds and grains production?




In recent years, Ukraine shows the certain decrease in profitability of grain production. The increase of prices for material and technical resources (fertilizers, plant protecting agents, seeds, fuel, etc.), which requires the growth of expenditures for crop production, is one of the main factors affecting the decrease of grain production profitability.

Thus, according to data of the State Statistics Committee of Ukraine, during the period of 2007-2010 the index of profitability of grain and leguminous crops production decreased from 28.7% to 13.9%. At the same time, it should be noted that last year demonstrated the increase of profitability level compared to 2009 (in 2009 the rate of profitability totaled 7.3%).

Maize is the most profitable crop to grow in Ukraine. In 2009, its profitability totaled 21.5%, in 2010 – 29.9%. Barley production showed the largest fall of profitability. In 2009 and 2010 barley cultivation was unprofitable. In 2009, the profitability index totaled -4.9%, in 2010 – -0.4%.

As for growing of oilseeds, the profitability of their production is somewhat higher compared to grains production. In 2010, sunflower seed was the most profitable crop to grow - 64.7% (against 41.4% in 2009). Also we should note profitability of soybean production: in 2009 – 34.1%, in 2010 - 16.4%, while in 2008 the profitability of soybean production was 1.3% only, and in 2006 its growing was generally estimated as unprofitable for enterprises (-4%).

According to the State Statistics Committee of Ukraine, rapeseed production also demonstrates the high profitability. In 2009, the profitability of rapeseed production totaled 23.8%, in 2010 – 26.6%.

How did change the profitability of major grains and oilseeds production in Ukraine during recent 5 years, what measures for increasing of profitability of crops production do agricultural producers use, what ways to increase profits - these and other issues will be discussed at the conference "AgroResurcy - 2012", which to be held on February 9, 2012 (within frames of the international exhibition "InterAgro - 2012").

You can get more detailed information about the event at the web-site.