Russian Agriculture Ministry specifies profitability of agricultural production in 2023 at 19%

MOSCOW. April 12 (Interfax) - The profitability of Russian agricultural production in 2023 was 19%, while grain production profitability was 17%, Deputy Agriculture Minister Elena Fastova told reporters.

The ministry clarified the overall profitability indicator after reporting a figure of 18% at the start of April.

"We have collected the reporting from the subjects, and today we can state that the profitability for 2023 was 19%," the deputy minister said.

Recalling that profitability was 6% in 2000, Fastova said that it grew in subsequent years, peaking at 25% in 2021. "Over the last two years, profitability has decreased slightly. It was 20% in 2022. The decrease is insignificant. We see revenue increased 10%, and in general, the profit of agricultural producers remained at the same level as in 2022," the deputy minister said.

The profitability of crop production was 26% versus 30% in 2022, she said. "We understand that high harvests put pressure on prices; today our prices for grains are still low, so the profitability for grains is at a level of 17%. However, there are crops such as oilseeds - soybeans, rapeseed. They have maintained a good level of profitability," Fastova said. The profitability of vegetable growing has also increased, she said.

The profitability of livestock farming increased to 17% in 2023 "due to the fact that feed has become cheaper," Fastova said. The profitability of dairy production has remained at 20% in recent years, and "thanks to this, the industry is attractive for investment; we build dairy complexes every year," she said.