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Profitability factor (organic/regular production)

Updated 28.3.2022

Average profitability has decreased clearly since the beginning of the 2000s. In recent years, there have also been strong fluctuations in profitability, particularly in crop production, which mainly results from variation in input and product prices. In dairy and beef cattle farming, profitability has developed more conservatively.

Profitability continued to be the lowest on cereal farms and other crop production farms. Their profitability factors were 0.23 and 0.22 in 2019 and in 2020 0.15 and 0.27. On pig farms, profitability factor increased from 2019, and were 0.73 in 2020, on poultry farms decreased and was 1.23. On dairy farms, the profitability factor increased from 0.47 to 0.56. Larger farms are primarily more profitable than smaller ones. In agriculture and horticulture, the average profitability factor was 0.41 in 2019, but it increased to 0.52 in 2020.

The profitability of organic production is significantly higher than that of regular production. The profitability factor of organic production was 0.69 in 2015, decreasing after that and was 0,58 in 2020.

Profitability factor of organic and regular production

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Description of the indicator

The indicator represents the profitability of different production methods with regard to organic and regular production. The profitability factor which represents relative profitability is calculated by dividing entrepreneurial income by the sum of salary and interest requirements.

Indicator data is obtained from Luke's profitability accounting material.

This is one of the national impact indicators of the 2014–2020 Rural Development Programme for Mainland Finland.

The indicator will next be updated in spring 2023.