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Agriculture’s boost of more than £9bn for UK economy

Agriculture’s boost of more than £9bn for UK economy

Farming contributed more than £9.2billion to the UK economy last year, according to farming ministry Defra.

Provisional figures from the UK Government’s food and farming department suggest the agricultural sector’s contribution to the economy increased by 7% to £9.222billion.

This was against a 13% increase in Total Income From Farming (Tiff) in real terms to £5.464billion, and a 15% increase in average individual incomes in real terms to £28,426.

Improved prices across all sectors offset a £740million rise in the price of animal feed and a £245million decrease in the value of oilseed rape.

The value of tatties increased by £210million to £940million – this was driven by a 22% increase in prices due to reduced supply, although towards the end of the year volumes increased by 7% as stocks were replenished.

It was a mixed bag for the cereals sector; the value of wheat was down for the second year in a row to £2.085billion, while barley was up £199million to £1.125billion.

Defra said increased supplies of both malting and feed barley – there were increased spring plantings following poor weather conditions at the end of 2012 – resulted in a 6% drop in the barley price, although increased volumes resulted in the 21% increase in overall crop value.

Overall livestock output increased by 8.5% to £14.241billion.

This was driven largely by a £505million increase in the value of milk to £4.271billion – average farmgate milk price rose by 3.5p to 31.6p a litre.

Poultry meat increased in value by £250million to £2.35billion, while pig meat value rose by £141million to £1.281billion.

“These latest figures are encouraging and show the industry doing well,” said UK Farming Minister George Eustice.

“A rise in global demand for British food and drink is providing growth opportunities that many of our businesses are taking up, increasing our exports by 50% over the last 10 years.”

In January, Scottish Government figures revealed Tiff in Scotland was up £128million last year to £828.6million as a result of improved weather and prices. This represents the second highest Tiff in a decade – 2011 was higher at £840million.

Total output from Scottish farms in 2013 was estimated at £3.138billion – its highest level since records began in 2002.