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Agriculture In Belarus Shows Maximum Debts

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Agriculture In Belarus Shows Maximum Debts

2021 is hardly the best year for the industry.

Following the results of 10 months, agriculture in the Republic of Belarus reduced production by 4.7% compared to 2020. The reduction in output was mainly ensured by crop production: the yield of grain and leguminous crops (excluding corn) fell by 19.6%, potatoes - by 8.1%, open field vegetables - by 24.4%, sugar beets - by 4.4%, writes the website banki24.by.

Agricultural production decreased by 2020 in all regions. Vitsebsk and Homel regions became the leaders in terms of the decrease - by minus 8.4%. Many areas with low natural soil fertility are concentrated in these regions.

Agriculture is an outsider in terms of hourly wages and a leader in terms of the number of working hours. For 9 months, on average in the economy, the hourly wages amounted to 8.7 BYN, the amount of working hours - 1418. For agrarians, these indicators reached 5.4 BYN and 1626 hours, respectively.

The average salary in the industry in January-September 2021 amounted to 984 BYN, while the average salary in the economy was 1400 BYN. For 9 months, the average number of staff at the flagships of the agricultural sector fell by 3.5% by 2020, with an average reduction in the economy of 1.7%.

In 2021, the flagships of the agricultural sector were more likely to fire workers than to hire them. For 9 months, the number of dismissed reached 70.8 thousand people, and the number of those hired - 64.7 thousand.

The proceeds of large and medium-sized farms increased in nominal value over 9 months by 13.4%. However, over the same period, producer prices for agricultural products rose by 14.2% by 2020. This means that in real terms, the revenue of the industry flagships has decreased compared to last year.

The average profitability of sales of the flagships of agriculture amounted to 6.3% over 9 months, while the average for the economy was 8.2%. However, the industry median profitability in 2021 is significantly lower.

At the end of 9 months of 2021, about 27.1% of agricultural flagships showed negative profitability (incurred losses from sales), and another 32.7% of flagships showed profitability in the range of 0-5%. This means that the industry median profitability was below 5%.

There are few high-yielding flagships in agriculture. According to the results of 9 months, only 3% of them showed a profitability of at least 20% and only 0.5% of flagships - at least 30%. The average shares of such organizations in the economy are 8.6% and 4.1%, respectively.

The total debts in the industry reached BYN 16.305 billion by October 1, and this is the maximum over the reporting period. The previous record lasted only one month. For 9 months of 2021, the total debts of the flagships increased by 9.4%, although for the entire 2020 the increase was 5.4%.

Payments by farmers on loans and borrowings for 9 months amounted to 2.457 billion BYN. Compared to 2020, the size of payments in favor of creditors jumped by 39.7% (average growth in the economy - 14.1%).