Volga Baikal AGRO News Update on the Results – 2021 !!!
Prices for crop production in 2021 as a whole have developed at attractive levels for its producers.
“The market prices for rapeseed, sunflower and cereals are quite high today, and we have every reason to hope that we will finish the year without losses. Even taking into account the existing export duties, as well as the increase in the cost of agrochemical products and agricultural machinery, the current prices for crop products cannot be called bad,”
– many agrarians share this point of view.
“In general, recent years have been quite successful for crop production both in Russia and abroad. High prices for products allowed agricultural producers to feel confident, engage in technical re-equipment and devote more time and money to developing technologies that make it possible to increase business productivity.”
Prices for some types of products, in particular oilseeds, are higher than expected this year. Nevertheless, grain prices, on the contrary, are lower than desired: they are limited by export duties.
Farmers have yet to sum up the financial results of the year, but it is already obvious that due to the increase in production costs and export restrictions, they will not be as good as they could be. However, this year the problem of the rise in the cost of means of production is not yet fully felt, since agricultural producers have partly used previously made stocks.
The increase in the cost of production in the agricultural sector is of a long-term nature, since inflation is observed across the entire spectrum of types of costs: from the cost of machinery and fertilizers to staff salaries. Nevertheless, in the context of a rapid increase in world food prices, the marginality of production in the main sectors remains.
To be continued tomorrow.
Stay with Volga Baikal AGRO! Together Ahead!