Even before the foot and mouth outbreak of 2001, UK agriculture was already in the midst of a serious economic recession that was having far reaching social and environmental consequenses on the fabric of the countryside. While few sectors of the industry have been immune to the financial situation, government continues to impose regulations that exist nowhere else yet carry burdensome cost to UK producers. We detail an industry in crisis.
Empty
fields: In 2001 UK agriculture suffered from the world's worst
outbreak of foot and mouth disease. Contaminated meat imported from
abroad has been blamed and over 6 million animals were slaughtered.
The economic consequences to agriculture and tourism ran to £
billions and the implications of an ungrazed landscape are only now
being understood.
Declining
output: The gross contribution of agriculture to the economy
continues to decline. A weak Euro has made exports to continental europe
more difficult and generally world prices for agricultural commodities
have fallen. In the UK a succession of problems with BSE, swine fever
and foot and mouth have hampered UK agriculture's ability to export
with consequent pressure on prices.
Falling
Incomes: Total income from farming has fallen by 60% since
1996. Many complete regions and sectors of the industry are generating
zero or negative return.
Farm
Incomes: Illustrated on an index basis. Recent surveys have
shown that even medium sized family farms in productive areas are no
longer producing a net income. Small farms and those in more difficult
areas are facing hardship and many exist only with income support.
Workforce:
It is not just collapsing incomes that are forcing farmers
and their workers out of the industry. With the increasing age profile
for farmers (average age 59), many are retiring and no longer being
replaced by their sons and daughters who have little interest in a career
in an industry that so many people love to hate. With the declining
workforce skill shortages in many key areas are now developing.
Milk
prices: How long can dairying continue? Few industries can
cope with a 30 % drop in prices in a five year period and dairying is
no exception. Prices are now the same as they were 15 years ago.
Cattle
prices: Declining prices for finished cattle have left the
beef industry with little scope for recovery after all the problems
associated with BSE.
Cattle
numbers: If farmers can't make an income from their stock they
go out of business or cease farming. The national beef and dairy herds
continue to decline.
Pig
industry: Affected by cheap imports and animal welfare regualtions
that exist no where else in the world, the UK pig industry has taken
a huge battering. With costs up and income down even the largest producers
are going bankrupt.
Sow
numbers: The breeding herd declines by over 20% in four years.
After many years of losses pig producers are calling it a day. The pig
industry in the UK receives no support and operates on a free market
basis.
Sheep:
Few sectors of UK agriculture have escaped the recession. Finished sheep
prices have fallen by nearly 30% in the period illustrated. Sheep are
key grazing livestock for maintaining the biodiversity of grass swards
but when there is no incentive to keep a flock, what price biodiversity?
Cereal
prices: A 40% drop in output prices in a five year period explains
the crisis that affects cereal production. Wheat is the UK's most important
crop.
Cereal
prices: Barley prices closely mirror wheat and there remains
only a small premium for the production of quality malting barley.
Oil
seeds: No crops are immune from the recession. Oilseed rape
showing the characteristic collapse in output.
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