The Ministry of Agrarian Policy of Ukraine has provided a forecast of crop and livestock profitability for 2024. The profitability of grains and oilseeds is expected to increase this year if the security situation stabilizes and exports increase. Already in January 2024, the seaports of Odesa region proved to be more profitable for exports compared to the ports of Constanta and Gdansk, which provided farmers with higher profitability due to more efficient sea exports.

However, the Ministry of Agrarian Policy expects yields to decline by 4-5% and elevator services to rise due to higher electricity prices. A slight increase in land rent is also expected.

In 2023, livestock production was profitable, but in 2024, profitability is expected to decline due to rising feed and electricity costs.

As for crop production, grain cultivation was not profitable in 2023, although the situation with oilseeds was better. The overall level of profitability of grains and oilseeds improved compared to the previous year, but low global prices prevented significant profitability.

Fertilizer costs accounted for an important share of farmers' expenditures, but due to financial constraints, they reduced application rates by 49% even as prices fell. Prices for other inputs, such as seeds, crop protection products, and fuels and lubricants, also declined.

In 2023, logistics costs for exports declined, which also affected the overall profitability of the agricultural sector.