The share of profitable agricultural farms in the Russian Federation decreased by 1.4% in January

Russia

Market & Price Trends

Innovation & Technology

Published Mar 30, 2024

Tridge summary

Recent data from Rosstat reveals a mixed performance in Russia's agricultural sector. The proportion of profitable farms in crop production and livestock farming has slightly decreased by 1.4 percent, falling to 79.2 percent. In contrast, the aquaculture sector experienced growth, with profitable farms increasing to 62.4 percent. Despite a marginal decline in the overall profitability of the agriculture, forestry, hunting, fishing, and fish farming sectors to 77.3 percent, January saw a significant 41.8 percent increase in the total profit of agricultural organizations in crop and livestock production, amounting to 67 billion rubles. This financial landscape is shaped by challenges such as high production costs and rising debt burdens, further strained by the Central Bank's 16 percent key rate. Additionally, the food and beverage industry also reported a decrease in the share of profitable organizations.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

The share of profitable farms and agricultural enterprises in the two main sectors of agriculture, crop production and livestock farming, in January of this year decreased by 1.4 percent from last year - from 80.6 to 79.2. Such data were provided by Rosstat. At the same time, unprofitable ones increased by 1.4 percent or 20.8%. These indicators also include hunting and the provision of services in these areas. In fishing and fish farming (hereinafter referred to as aquaculture), the situation turned out to be more positive - the share of profitable farms in these areas increased from the same month last year from 58 to 62.4 percent, and unprofitable farms decreased from 42 to 37.6. In general, in agriculture, forestry, hunting, fishing and fish farming, the share of profitable farms over the year decreased from 78 to 77.3 percent, and unprofitable farms increased from 22 to 22.7. The financial problems of farmers are associated, first of all, with the high cost of production, as ...

Source: Rosng