Economic efficiency of growing niche crops in Ukraine

Abstract

Background. The diversification of agricultural production through niche crops is an important strategy for increasing profitability, sustainability and resilience to climate change in Ukraine. Despite growing interest, the economic efficiency of cultivating niche crops remains insufficiently studied. This research aims to assess the economic performance of selected niche crops – sugar sorghum, grain sorghum, English lavender, lavender hybrid and medicinal hyssop – under the conditions of the Southern Steppe of Ukraine. Results and conclusions. The study was based on production and financial data from the Educational, Scientific and Practical Center of Mykolaiv National Agrarian University for 2024. Sugar sorghum and grain sorghum demonstrated stable yields of 3.5 ÷ 3.7 t/ha and high profitability levels of 122 ÷ 125 %, reflecting low production costs and steady demand from the bioenergy and food sectors, although net profit per hectare remained relatively moderate. Essential oil crops generated substantially higher gross income. English lavender and lavender hybrid achieved yields of 5.7 ÷ 6.5 t/ha, with gross income exceed-ing 250,000 UAH/ha and profitability ranging from 53.5 to 59 %, despite higher initial investment costs. Medicinal hyssop showed the highest economic efficiency, with profitability reaching up to 150 % due to low production costs and high market value of essential oil. Overall, the findings confirm that niche crops are economically viable and represent a promising direction for diversifying agricultural production in Ukraine. The cultivation of essential oil crops, particularly lavender and hyssop, offers high added value and export potential, while sorghum ensures financial stability. Long-term profitability may be increased by using own planting material, expanding crop cultivation area and developing processing infrastructure.