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UK Farming Statistics

09 June 2015

UK Farming and Food Brief - May 2015UK Farming and Food Brief - May 2015

UK Farming Statistics

Headline Summary

The monthly farming and food brief summarises the latest statistical and economic information relating to the agricultural sector. In particular, it highlights the results of recently published evidence and research.

Food prices continue to fall

The fall in food prices over the last year has been driven by significant declines in international food commodity prices, falling oil prices and continuing intense price competition between supermarkets. Some of these effects take time to feed through to inflation.

Year on year food prices have continued to fall, with an annual rate of inflation of -2.8 per cent in the year to April 2015, according to official figures released today. General inflation is -0.1 per cent, down from 0.0 per cent in March. This is the first time the CPI has fallen over the year since official records began in 1996 and the first time since 1960 based on comparable historic estimates.

Fall in Total Income from Farming

In 2014 Total Income from Farming fell by £247 million to £5,379 million, a 4.4% decrease on 2013 and is 1.2% lower than the 2011 total.

The strengthening sterling against the euro reduced the value of payments received from the EU by $459 million in 2014 pushing Total Income from Farming below 2013 levels. Falling price offset by increased production saw the value of outputs fall by £142 million to £2,580 million. The value of intermediate consumption, the goods and services consumed or used as inputs in the productive process, is estimated to have reduced by £613 million (3.7%) to £1,590 million.

Gross value added at basic price, which identifies agricultures contribution to the Gross Domestic Product (GDP), rose by £471 million to £9,922 million, a 5.0% increase.

Rise in Total Factor Productivity of the agricultural industry

Total factor productivity of the agricultural industry in the United Kingdom, an indication of the efficiency and competitiveness of the industry, increased by 6% between 2013 and 2014. Weather conditions had a key role in this increase; the good weather conditions in 2014 after the poor conditions in 2013 saw the volume of outputs increase.

The volume of all outputs rose by 6.5% in 2014, driven by a 13% increase in crop yields. This was offset by a 0.4% increase in the volume of all inputs.

Milk prices

For April 2015 there has been a 1.5% (0.38p per litre) decrease in the UK average farm gate milk price since last month to 24.59p per litre. This represents a 26% decrease on the April 2014 price.

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