Demand for agrochemicals in Greece has been satisfactory from 2014 onwards as agricultural income improved after a decade of continuous decline, helped by the Common Agricultural Policy's new subsidies in 2015, a survey by Infobank Hellastat said on Thursday.

Alexis Nikolaidis, Economic Research & Sectorial Studies Senior Analyst, said that higher producer prices in certain basic products have attracted farmers interest and as a result inflow quantities are rising, while production costs fell slightly after rising significantly during the first four years of the recession. Eurostat data showed that spending on agrochemicals grew 2.7 pct in 2016 totaling 232.3 million euros.

The survey noted that a significant problem remained illegal imports of non certified agrochemicals from Bulgaria and Turkey, while companies in the sector faced significant delay in payment, which in some cases exceeded six months.

The survey analysed the financial results of 24 enterprises in the sector. Combined turnover grew 5.9 pct in 2015 to 473.41 million euros, EBITDA eased slightly and pre-tax earnings grew 70 pct. EBITDA margin fell to 5.6 pct, while capital leverage remained at 2/1.