$402 per hectare: why agribusiness became record profitable in 2024
22 July 2025 23:04
Farmers earned more despite the war. Sunflower, rapeseed, and corn crops brought profits to farmers, "Komersant Ukrainian" reports, citing research by Agrohub.
Analysts have summarized the results of agricultural production efficiency for the 2024 season. They conducted two stages of research among the 14 largest agricultural holdings in Ukraine. The total area of fields included in the analysis amounted to 1.7 million hectares, covering eight macro-regions of the country. The study showed positive dynamics in sales and profitability despite climate challenges and the war.
Thus, sales of agricultural products in 2024 were much faster than last year. As of the end of January 2025, more than 60% of corn and sunflower had already been sold, while in January 2024, sales of these crops amounted to only 25% and 27%, respectively.
Sunflower was particularly active in sales: its share in the crop structure decreased, but the demand for processing increased, and the number of oil extraction plants increased. Domestic demand for this crop also grew, which was an important compensator for unstable exports.
A stable sea export corridor remained one of the key factors behind the growth in sales. Despite the shelling of the port infrastructure, it remained the most efficient sales channel for export crops. Market operators note that the average cost of logistics by sea was lower than alternative routes through land borders, which further increased the margin of operations.
Another important indicator is the projected level of EBITDA per hectare. In 2024, it reached USD 402, which is significantly higher than the previous season’s figure of USD 94/ha. The calculations covered the following crops
- winter wheat (403.5 thou hectares)
- winter rapeseed (169.5 thou hectares)
- winter barley (18 thou hectares),
- sunflower (302.5 thou hectares),
- corn (363.4 thou hectares),
- soybeans (411.2 thou hectares).
The data on the sales volume of crops in 2024 are based on the research of Agrohub company, conducted among 83 field companies with a total area of 1.7 mln ha in January-May 2025. The area of crops surveyed: 302.5 thou hectares of sunflower, 363.4 thou hectares of corn, 411.2 thou hectares of soybeans, 403.5 thou hectares of winter wheat, 169.5 thou hectares of winter rapeseed and 18.0 thou hectares of winter barley.
The increase in profitability occurred despite a decline in yields. Drought and heat in the central, southern and eastern regions of Ukraine had a negative impact on the harvest, with soil temperatures rising above 60°C in summer and localized precipitation not helping the situation. In the western regions, yields declined slightly due to better weather conditions.
Prices for agricultural products grew throughout 2024, which offset the decline in yields and increased profitability. The most profitable crops were sunflower, corn, and rapeseed.
As for the costs, agricultural producers were able to partially reduce them. The cost of growing sunflower and rapeseed decreased by about 8% due to cheaper fertilizers (prices returned to the level of 2021 after a peak in 2022). The cost of plant protection products for sunflower and corn also decreased by 11%, in particular due to less need for treatments in dry conditions.
Read also: Leaders of the agricultural sector: who earned the most in 2024
Yields have fallen, but grain moisture content has also decreased, which has saved on drying and transportation. For example, the average moisture content of corn in 2024 was 16.7%, compared to 19.8% in 2023.
The 2024 season illustrated how the agricultural business in Ukraine is learning to adapt to complex challenges, from war and unstable logistics to climate change and resource shortages. “The growth of profitability and efficiency in such conditions is the result of flexibility, strategic planning and proper agricultural technology,” Oksana Bobrova, Head of Agrohub Benchmarking, commented on the situation on the agricultural market.
“Thus, 2024 showed that even in the face of war and extreme weather, Ukraine’s agricultural sector is able to remain profitable thanks to a strategic approach, cost optimization and flexible response to market conditions.
Agrohub is a platform for the development of agricultural innovations. Agrohub conducts diagnostics and analysis of agricultural companies, trains agribusiness leaders in innovative approaches, and promotes a culture of innovation in the agricultural sector through educational programs and the media.
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