Ukraine. Rapeseed margins to exceed those of sunseed

02.08.2017

In the opinion of specialists of the Center for Strategic Agricultural Studies, the Sumy National Agricultural University, profitability of winter rapeseed growing in Ukraine may reach 83%, while that of sunseed cultivation is expected at 79%, stated the Center’s head Oleksandr Maslak. 

“According to calculations for winter rapeseed growing, total farmer costs will reach UAH 15,000/ha. With a yield of 2.5 MT/ha, production cost will be almost UAH 6,000/MT. With a product selling price of UAH 11,000/MT, the profit will reach UAH 12,500/ha and margins consequently hit 83%,” the expert pointed out.

The scientists forecast somewhat lower profitability of sunseed growing.

“The total cost of sunseed growing by conventional cultivation practices will average UAH 14,000/ha. With a yield of 2.5 MT/ha, the production cost will be UAH 5,600/MT. With a product selling price of UAH 10,000/MT, the profit will be UAH 11,000/ha that will provide for margins at 79%,” Oleksandr Maslak explained.

As a reminder, oilseeds were the most profitable crops to grow in 2016. So, margins of sunseed were at 61.9%, while those of soybeans and rapeseed were at 51.8% and 45%, respectively.

Annual International Conference “Black Sea Oil Trade” – is an effective platform, providing oilseed industry operators with vast networking opportunities, exclusive analytics of Ukrainian and Black Sea agri market, insights for development of the long term business strategies.

Preliminary Agenda of the Event is available at the conference website.

The V International Conference  “Black Sea Oil Trade-2017” will take place in September 19, 2017 in Hilton hotel, Kiev, Ukraine. Organizer – consulting agency UkrAgroConsult. General Sponsor – ING Bank.

 

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