Ukrainian farmers boost profit by 1.5 times in 2020 – experts

Ukrainian agricultural enterprises' profit in 2020 grew by 1.5 times (47.7%), to UAH 58.4 billion, or US$2.1 billion.

Read alsoBread price hikes projected in Ukraine"Such a result was achieved solely due to the growing revenue in the crop production sector, which increased by 55.2%. At the same time, the livestock production's revenue shrank by UAH 2.9 billion [US$103.3 million]," the press service of the National Scientific Center "Institute of Agrarian Economics" said on its website on February 2.

Agricultural enterprises producing sunflower seeds posted the highest profits, namely about UAH 21.1 billion (US$752 million), followed by producers of wheat (UAH 19.0 billion/US$677.1 million), corn for grain (UAH 11.9 billion/US$424.1 million), rapeseed (UAH 6.6 billion/US$235.2 million), and milk (UAH 3.8 billion/US$135.4 million).

At the same time, egg producers saw the largest losses, that is UAH 4.9 billion (US$174.6 million), as well as those engaged in cattle breeding (UAH 1.4 billion/US$49.9 million), pigs breeding (UAH 700 million/US$24.9 million), poultry breeding (UAH 350 million/US$12.5 million), as well as the production of sugar beets (UAH 280 million/US$10 million), and peas (UAH 250 million/US$8.9 million).

Experts say the growth in profits in 2020 was due solely to rising prices of agricultural products, while the output of such products shrank by 14% against 2019.

Background

Ukraine's Cabinet of Ministers envisaged UAH 4.7 billion, or US$167.5 million, in support for the agricultural sector in the 2021 national budget.