Agricultural modernization: Enterprises ‘drowning’ in loans

A quarter of the agricultural enterprises’ profits is used to repay the loans.

From 2011 to 2015, the agricultural sector took 274 trillion rubles – about $ 15.7 billion – in loans. This was announced by Deputy Prime Minister Mikhail Rudy at a joint session of the House of Representatives and the Council of Ministers.

Since the beginning of the year, to repay the loans, agricultural enterprises spent 24% of their profits, and the processing plants used 43%. The decline in revenue was also affected by the modernization, said Mikhail Rudy.

In this situation, the farmers are more successful than their state counterparts. The fact that they work more effectively than the agricultural enterprises was noted during the meeting by the Minister of Agriculture and Food Leanid Zayats.

“The efficiency of private farms is 8% higher than in the state agricultural enterprises,” the minister said.

At the same time, agricultural enterprises have potential, said Leanid Zayats and stressed that their leaders “should be given more autonomy.”, following BelTA

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