Income of the agricultural sector drops by 0.7% in 2012
Factor income, which is the result of the developments in agricultural output, subsidies and intermediate consumption, went down by 0.7% when compared to 2011, to €67.5 million in 2012. This was brought about by a sharp decrease in subsidies on production (-20.5%).
In 2012, entrepreneurial income (-0.8%) absorbed 91.2% of the total factor income. Dependence on subsidies edged up by 0.8 percentage points, from 28.8% in 2011 to 29.6% in 2012.
A marginal decline of 0.1% was registered in the market value of gross agricultural production in 2012. Characterising this result were drops of 3.9 and 2.2% in the market value of crop and livestock products respectively. This was mainly brought about by a decrease in the production of fruit and vegetables in the crops sector and a decline in the pig population in the animal husbandry sector. In contrast, the value of animal products registered an increase of 8.2%, due to better prices fetched for milk and eggs.
Intermediate consumption, which measures expenditure in the production process, decreased by 0.1% to €71.0 million. This was mainly attributable to a drop in expenditure on veterinary services (-13.4%) and maintenance of buildings (-5.3%). On the other hand increases of 1.7 and 1.3% were registered in animal feed and energy respectively.
Total subsidies absorbed by the industry in 2012 amounted to €20.0 million, up by 2.1%. Subsidies directly linked to production dropped by 20.5%, mainly due to lower amounts received in respect of crop products. In contrast, an increase of 5.0%, or €0.9 million, was registered in the subsidies not directly linked with production.