Beef production in Ukraine became profitable for the first time in 25 years

Submitted by bashun on Thu, 08/09/2018 - 14:15

Cattle meat production in Ukraine became cost-effective for the first time in 25 years. This was reported by the press service of the National Research Center "Institute of Agrarian Economics" referring to the comment of the director of the Institute Yurii Lupenko concerning the recently published data on the level of profitability of agricultural production in agricultural enterprises published by the State Statistics Service of Ukraine.

"For the first time in the last 25 years the production of cattle meat was profitable in livestock production - 3.4% against (-24.8%) in 2016. It also became profitable to produce pig meat - 3.5% against (-4.5%) in the past year, "- is said in a statement.

Although the pork figure is still significantly lower than the historic maximum of the last 25 years: in 2015 the profitability of the production of pig meat was 12.7%, Lupenko added.

It is noted that for the second year in a row poultry production (without recycling at its own capacities) was profitable: 7.0% last year and 5.0% in 2016.

Meat production of sheep and goats was (-39.9)% against (-35.2)% in 2016 and remained unprofitable.

At the same time, in 2017 - for the first time since 2006 - the production of eggs (-9.0%) became unprofitable. In 2016, they barely kept the profitability at 0.5%, whereas in 2015 the profitability of production of this kind of poultry products reached a record level since 1994 of 60.9%, Lupenko said.

According to the scientist, last year the profitability of almost all types of crop production- decreased in addition to the atypical potato for agricultural enterprises. Most of all, sugar beet production decrased almost twice, to 12.4% against 24.3% in 2016.

According to the expert, a decrease in the level of profitability of production of most agricultural products will force agricultural enterprises to reorient to the most profitable, primarily crops and technical crops, except for sugar beet.

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