According to data of APK-Inform Agency, mineral fertilizers and petroleum products form the largest proportion of material exchanges, which are traditionally included in the prime cost of agricultural crops cultivation. Thus, during recent five years the share of expenditures on repair parts, repair works and construction materials varied within the range of 8.6-11.7%, seeds and planting material – 17.9-19.6%, payment of services and works performed by third organizations, and other material expenses - 17-22.7%, mineral fertilizers - 19.4-26%, petroleum products - 20.1-27.8%. Thus, the sum of expenses for mineral fertilizers and petroleum products usually varies within the rang of 39.5-53.8% from the general costs.
Due to significant rise in price for all component elements of the prime cost in the terms of the low prices for selling of finished products, and because of the disparity of prices, the agricultural enterprises of different ownership forms have certain losses. Cultivation of sunflower, rapeseed, wheat and maize is quite profitable, although the growing unprofitability of cultivation of individual agricultural crops reduces the profitability of the industry.
According to analysts of APK-Inform Agency, in the current market conditions it is rather difficult to expect for dramatic positive changes in pricing policy. Therefore, if such trend in the pricing policy of components of agricultural production in the plant growing sector - on the one hand, and the finished grain products – on the other hand, to be saved, it will mean that agrarians are likely to have even more to save on usage of expensive, though very effective elements of agricultural technology (high-quality varieties and hybrids, mineral fertilizers, plant protecting agents) and rely on good luck and natural fertility of the Ukrainian chernozem.
You can discuss the prospects of development of the Ukrainian agricultural production and find ways to improve the profitability of the production of basic grains and oilseeds, during the conference “AgroResurcy - 2012: ways of increase of agroindustrial profitability" to be held on February 9, 2012, in Kiev within framework of the exhibition "Interagro 2012".
You can find detailed information about the conference at the web-site.
