World meat industry news

The consulting company BEFL has published a rating of the largest owners of agricultural land in Russia for 2023, where, among other things, it analyzed the profits of companies in crop and livestock production.

The final conclusion after analyzing the financial performance of companies in both industries according to Rosstat is as follows: the share of profitable organizations in crop production decreased to 83.9% in 2022, while in 2021 it was 85.3%. In livestock, there is an upward trend in profitable companies: 83.7% in 2022 compared to 80.8% in 2021.

Photo: BEFL

Nevertheless, despite the decrease in profitability, activity in crop production is observed, especially among large agricultural holdings. They continue to buy agricultural land from medium-sized farms, thereby increasing their assets. There is a trend in the consolidation of land from legal entities. As of January 1, 2023, legal entities own 23.6 million hectares, which is 6.2% of the total agricultural land. The increase for each year is 1 million hectares. Despite the rise in prices for such lands, they do not lose their investment attractiveness, which is confirmed by stable activity in the market.

BEFL analysts draw attention to another trend, namely the addition of new activities of companies from the crop industry related to livestock. Thus, they expand the scope of grain raw materials and receive added value.