How to achieve increased profitability of agricultural enterprises under new conditions

Traditional production of wheat, corn, or sunflower, as well as livestock farming, with a proper and balanced business approach, can generate significant profits. However, farmers who want to diversify their income should also pay attention to other areas of agribusiness that are capable of generating additional profit. In many cases, this involves processing what has been produced, since the final product is most often what brings this profit.

Get involved in hemp

Of course, this is not about ordinary narcotic hemp, but about industrial hemp. From the latter, many varieties of which were developed at the Hlukhiv Institute of Bast Crops of the Ukrainian Academy of Agrarian Sciences, it is possible to produce natural fiber that is used in modern industry to manufacture twine, electrical wiring insulation, and other products. There is currently a global trend toward replacing synthetic and mineral fibers with natural ones, because they are non-toxic and much lighter. Thus, the cultivation of industrial hemp and its primary processing can generate good profits. This has been proven by Michel Tereshchenko, whose company Linen of Desna successfully operates in this field.

Eggs — for processing

Traditional egg production aimed at the end consumer involves many risks, including seasonal price drops. These risks can be diversified by developing egg processing. A vivid example is the Ovostar plant, launched in 2006 by Ovostar Union. Today, the plant produces dry egg products: egg powder, dried unsweetened egg white (albumin), dried pasteurized egg yolk, as well as liquid products: pasteurized egg melange, egg white, and others. The main consumers of these products are manufacturers of confectionery, bakery products, and sauces.

Prospects for sorghum

Sorghum is an annual crop that successfully competes with barley, corn, and millet in terms of nutritional qualities. A pioneer among domestic companies in this area can be called NIBULON. Given the growing drought factor in Ukraine, the relevance of this crop is increasing. In particular, experts claim that the production of feed sorghum is promising, as it can also be supplied to external markets.

Ostrich farm

There are already several farms in the Sumy region that are engaged in ostrich breeding. Experts believe that an ostrich farm is a promising direction in agribusiness, especially since ostriches are undemanding to the Ukrainian climate, tolerate our winters quite well, and can feed on alfalfa and clover. However, the success of the project depends on how the sale of finished products is organized; that is, the producer needs to establish close ties with consumers of the final products — meat, eggs, leather, and feathers. These may include restaurants, souvenir manufacturers, and light industry enterprises producing footwear and cosmetic products. The company Agro-Soyuz, which is engaged in industrial ostrich breeding, claims that this is the most profitable type of poultry farming when approached competently. Already in the first year, profits can amount to 200–400%.

Spicy, very spicy

Ukraine consumes 80 thousand tons of garlic per year, but grows no more than 30–40 thousand tons — the rest has to be imported. Thus, there is a product deficit in the market that domestic producers can fill. Moreover, due to the rise in the dollar exchange rate, imported garlic will increase significantly in price. Experts claim that several years ago, beginner producers received profits of 100–200%, while medium-sized producers could expect up to 500% per year. Later, profits declined somewhat, but nevertheless remain sufficient to this day. At the same time, experts warn that this crop is very resource-intensive and requires substantial investment.

Nikolai Peshkov

Based on materials from the Latifundist website