Russia: Rosselkhozbank named the agricultural segments with the largest contribution of farmers and profitability

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APK-Inform

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Dairy cattle husbandry, beef cattle production, as well as cultivation of grain and oilseed crops, are the TOP-3 of most profitable segments of work for agricultural enterprises in Russia. Experts of Rosselkhozbank (Russian Agricultural Bank) reached the conclusion based on the analysis of Rosstat statistics and financial statements of the bank's clients, reported the press-service of the bank, on February 12.

According to the analysis, the EBITDA margin of agricultural enterprises is high in all categories. The TOP-3 of segments included dairy production (35%), crop production (31%), and beef cattle breeding (29%). Generally, the profitability of crop production for all types of economic entities was lower compared with the agricultural sector, and totaled 29%. In the production of eggs and poultry meat, the profitability of farms was equal — 17% each (the share of agricultural enterprises in both segments totaled 1%), explained the experts.

Also, the average turnover of the farm engaged in the dairy production totaled nearly 15 mln RUR. It allowed keeping a herd of 100 dairy cows. Launching of such farm requires nearly 50 mln RUR in the form of investments.

In the segment-leader by the share of agricultural production, grain crops and sunflower seed, agricultural enterprises planted the crops throughout the average land area of 400 ha. In such case, the costs for launching of the farm totaled nearly 20 mln RUR. The average turnover reached the level of 12 mln RUR, the press-service added.

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