Index of profitability of livestock production in Ukraine

One of the essential factors in the development of animal husbandry is the ratio of product sales prices to the cost of feed spent on its production. In the structure of production costs of the main types of animal husbandry products in Ukraine, the specific weight of feed is from 50 - in cattle breeding and sheep breeding to 90% in poultry farming, which is why increasing the profitability of using feed in specialized enterprises of the industry is a crucial prerequisite for ensuring their economically efficient functioning. The article studies the potential level of the profitability index for the main areas of livestock production in Ukraine in wartime conditions. The possible potential level of the profitability index of animal husbandry in Ukraine at the level of enterprises was determined using the technological standards of feed costs for the production of the main types of products. An assessment of the profitability index in the main directions of animal husbandry was carried out, and the main factors affecting its value were substantiated. The probable price structure of the sale of the main types of animal husbandry products in Ukraine was determined, and the degree of influence of the profitability index's value on the profitability level of the sale of animal husbandry products was calculated. According to the study results, it was determined that in war conditions, a favorable parity between the price of products sold and the cost of fodder for production was formed for the industry enterprises. The high level of the index is due to the increase in purchase prices for livestock products at a time when the prices of feed grains, in particular wheat, corn, barley, and oats, have decreased significantly due to the accumulation of significant stocks due to export restrictions, which led to an increase in supply raw materials on the domestic market. The highest level of the profitability index for 2024 is predicted for enterprises that raise pigs and poultry for meat and milk and egg producers, which allows receiving about 36-50% of gross profit concerning the sales price. However, raising cattle and sheep for meat is characterized by a relatively low profitability index of 1.55-1.73, corresponding to the limit between profitability and unprofitability of production. To increase the profitability index of livestock products in Ukraine, it is necessary to implement a complex set of organizational, economic, and technological measures regarding the rational use of feed and the increase in the productivity of animal husbandry.