Page 79 - economic report 2021

The Andorran economy:

developments in the main sectors

IX. The primary sector

The primary sector is the smallest sector of
activity in the Andorran economy. It only PRIMARY SECTOR GVA
Variation rate in real terms
represents 0.5% of Andorran GVA and 0.4% Chart 9.1
of employees, so changes in this sector do not
significantly influence developments in the
economy as a whole. The trend in GVA for the
agricultural sector was positive over the period
2016-2017, but began a recessive phase in
2018 that has lasted until 2021. Specifically,
GVA in the agricultural sector saw a decline of
0.6% in 2021, although this was the smallest
decline in the last four years.

Source: Department of Stat st cs.
In line with the gentle decline in activity, 77
the number of employees in the sector also
saw a relatively slight decline in 2021, from In 2021, the GVA of the agricultural
157 in 2020 to 154 in 2021. The number of sector shrank for the fourth consecut ve
establishments dedicated to the primary sector
also fell slightly, from 29 to 28. year, but less than in previous years.

Note that the entry of agricultural products into the customs union is opening up new opportunities
in the primary sector, as it will be able to access new markets and benefit from European quality
labels. This opportunity has spurred crop and livestock farmers to make investments to improve
the production process, in order to obtain quality seals and increase productivity, especially in the
wine and meat sectors. In parallel with the effort to introduce improvements in the production
process, the monthly wages of employees in the primary sector grew cumulatively 14.4% over
the period 2016-2020, and practically stabilised in 2021 at about €1,605 on average, the highest
level in the series.

The number of crop farms has In 2021, there were 312 crop farms in the
remained fairly stable since 2014. Principality, one less than in 2020. The parish The Andorran economy: developments in the main sectors | IX. The primary sector
with most activity is still Sant Julià de Lòria, with
64 farms, and at the other extreme, Escaldes-
Engordany with only 28 farms. Over time, the number of farms has remained quite stable, around
312-316 since 2014, whereas the total land area under cultivation decreased over the period
2017-2020 then increased again in 2021. Specifically, the total area under cultivation (UAA) went
from 19.6 km in 2020 to 19.9 km in 2021.
2
2
By type of crop, 64% of the total farmed area is used for pasture, 24% for hay and 6% for tobacco.
Over the last three years, the area used for pasture has increased whereas the area used for
hay and tobacco has decreased. Also the area used for fallow, market gardening, potatoes, vines