The Russian Agricultural Bank analyzed the profitability of the Russian agro-industrial complex in terms of sub-sectors according to the results of 2019 and identified possible factors for a further increase in production.
In 2019, the overall Russian agricultural sector's EBITDA margin was 20%, which exceeds the results of 2018 (19%).
With a moderate increase in the overall profitability of agriculture, some sub-sectors showed significant growth. Greenhouse vegetable growing (from 44% in 2018 to 52% in 2019), crop production (from 23% to 29%), as well as beef cattle breeding (from 42% to 45%) became the leaders in increasing this indicator.
“In 2019, the industry again became one of the drivers of Russia's economic growth. We see a positive trend in the change in the profitability of domestic agriculture. Non-core investors also come to the industry, since the agro-industrial complex attracts them with its marginality. For 20 years, the Russian Agricultural Bank has accumulated and analyzed a colossal expertise that we are ready to share, ”commented Irina Zhachkina, First Deputy Chairman of the Board of the Russian Agricultural Bank.
The First Deputy Chairman of the Management Board of RSHB added that, against the background of the apparent saturation of food product markets, the domestic agro-industrial complex retains significant potential for further production growth. Key growth factors are local markets and export potential.
The data was presented at the international conference “Where is the Margin” in Moscow.