Experts note that the prices that settled for agricultural products in 2025 resulted in many companies receiving significantly less profit than they had planned.
According to the latest data, the industry lost over 100 billion rubles in profit in 2025.
This phenomenon has two causes. On the one hand, agricultural prices have fallen. On the other, the cost of purchasing fertilizers, machinery, and other inputs has increased.
As a result, some companies have fallen into a trap.
This is especially true for those who decided to increase production volumes: by earning minimal profit or even a loss per hectare while simultaneously increasing the number of hectares, these companies ultimately achieved a financial result that was far from what they had hoped for.
As a result, Russian agriculture currently finds itself in a rather paradoxical position, experts note.
On the one hand, physical production indicators are showing steady growth, reaching record levels. This is fully consistent with the state’s goal of achieving self-sufficiency in key products and increasing export volumes.
On the other hand, the financial return on this growth is steadily declining, making it increasingly unprofitable for companies to operate.
The problem is most acute in the grain and milk segments—traditional sectors of the Russian agricultural sector.
The price imbalance between inputs and finished goods has several causes, beyond the objective state of the market.
For example, producers must sell their products in a highly competitive market, which is also regulated by the state, which sets price caps on many products critical to the population.
As for agricultural machinery and fertilizer producers, the picture is dramatically different.
The market is largely monopolized, so agricultural companies are forced to accept the prices offered by sellers.
Furthermore, export duties and other regulatory instruments also reduce the opportunities for agricultural producers to profit from their activities.
As a result, producers of certain agricultural products have found themselves in a difficult situation.
For example, the cost of milk production has more than doubled since 2017, while purchasing prices have increased only slightly.
If this situation continues, it will drive smaller players out of the industry and increase producers’ dependence on government support.
