01/31/2018 | Press release | Distributed by Public on 01/31/2018 03:52
Factor income in agriculture lower for the second year running
Compared to 2016, in 2017 a 15% decrease in the real factor income in agriculture - which equals the net value added less other taxes on production plus other subsidies on production - is expected. Lower factor income is expected to be influenced by lower production value and by the assumption that the subsidies value will stay at the previous year level. The factor income per annual work unit is expected to decrease by 13%, which is two percentage points less than at the first estimate. The reason for the lower decrease in the factor income per employee, in comparison with the previous year, is the higher prices of some crop items (cereals, wine) that were not known at the time of the first estimate.
In 2017 lower volume again but the prices of agricultural products higher
According to the second estimate, the value of the agricultural output in 2017 is expected to amount to EUR 1,173 million, which is a decrease by 6% over the previous year. The volume is expected to decrease by 9% and the prices to increase by 4%.
Lower crop output value in all crops, especially fruit and cereals
Crop output value is expected to decrease by 15% due to the 19% volume decrease, while the prices are expected to increase by 4% over the previous year.
The main reason for the lower crop output value is the lower fruit output (almost a half of the 2016 harvest) due to the spring frost and the cereals production decrease by 17%. About a quarter lower volume is expected also in industrial crops and feedingstuffs; vegetables and potato production is expected to decrease by 7% and wine production by 4%.
The value of fruit is expected to decrease by a third due to the volume decrease by almost a half and despite the price increase. The value of industrial crops is also expected to decrease by a third due to a quarter lower volume and 6% lower prices. The value of cereals is expected to decrease by 10% mainly due to the volume decrease, while the prices are expected to increase by 7%. The value of wine is expected to decrease by 2% due to the volume decrease, while the prices are expected to increase.
The animal output value increase due to the price and volume increase
According to the estimate, the animal output is expected to increase by 6% due to the 4% price increase and the 2% volume increase. The price and volume movements are different as regards animals and animal products.
The animals value is expected to increase by 2% due to the volume increase by 3% and the price decrease by 1%. The cattle output value is expected to increase by 3% due to the volume and price increase. The pigs output is expected to increase by 4% due to the price increase by 7% despite the volume decrease. The value of poultry is expected to decrease by 2% despite the volume increase due to the price decrease by 7%. The output value of sheep and goats is expected to increase due to the volume increase.
The animal products output is expected to increase by 13%, mainly due to the price increase by 12%; the volume is expected to increase by 1%. The main influence on the higher value of animal products is expected from milk; the milk output value is expected to increase by almost a fifth due to the price increase by 18% (after the milk price decreased by 12% in 2016).
Costs of agricultural production at the previous year's level
The value of intermediate consumption is expected to increase by 1%. The main reason is the expected 1% volume increase, while the prices of intermediate consumption are expected to remain at the previous year's level.
Higher costs are expected for feedingstuffs (due to higher prices and volume) and energy (due to the 4% higher prices), while all other kinds of intermediate consumption costs are expected to be the same as or lower than in the previous year. The highest value decrease, by 11%, is expected by fertilisers due to the expected price decrease.
Slight employment decrease
Compared with the previous year it is expected that in 2017 employment will decrease by 1%.