Archive:Agricultural income per annual work unit in 2012

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Data from May 2013. Most recent data: Further Eurostat information, Main tables and Database. Planned article update: (dd) Month YYYY(, hh:00).

According to the second estimates of the Economic Accounts for Agriculture (EAA) submitted to Eurostat by the Member States at the end of January 2013, agricultural income per annual work unit (Indicator A) at the EU-27 level is estimated to have remained stable in 2012 compared with 2011. However, agricultural labour input showed a slight decrease (-0.2%) in EU-27 compared with the previous year.

Table, Figure or Map X: Full title of the Table, Figure or Map - Source: Eurostat (educ_ilang)

Main statistical findings

The 2012 stability of agricultural income per annual work unit followed an increase of 8.3% in 2011 and 17.1% in 2010 at the EU-27 level.

This latest development was driven by an increase of 3.6% in agricultural income per work unit in EU-15, which was counterbalanced by a decrease in EU-12, i.e. those Member States which joined the EU in 2004 and 2007, (-11.9%). The decrease in indicator A for EU-12 was linked to the decrease in factor income (-11.3%). Nonetheless, the agricultural labour input showed a small increase of 0.7% in 2012.

On the other hand, the factor income in EU-15 increased by 2.4% in 2012 compared with the previous year. This led to an increase of 3.6% in the agricultural income, which when divided by the agricultural labour input, resulted in a decrease in Indicator A (-1.1%).

For EU-27, an index (2005=100) of Indicator A reached 128.5% in 2012, the same as in 2011. This increase since 2005 is attributable to the positive developments in EU-15 and EU-12, which showed rises of 17.9% and 50.1% respectively, when compared with 2005.

Agricultural income per work unit, Indicator A, in 2012: comparison across countries

Agricultural income per work unit developed differently across the Member States of the EU-27. In 2012, the largest increases were seen in Belgium (+27.9%), Latvia (+21%) and Lithuania (+17.6%). The Netherlands, Germany and Estonia also showed increases of over 14%.

The steepest decreases, on the other hand, were seen in Romania (-27.1%), Poland (-13.7%) and Slovenia (-12.2%). Hungary, the United Kingdom, Ireland and Austria also recorded marked decreases (steeper than -7.5%).

In 2012, almost 83% of total factor income in EU-27 was generated in EU-15, by 50% of the total agricultural labour input (in AWU).

The trends in the two EFTA countries for which data were available, were very different in 2012 compared with 2011. Indicator A rose in Norway (+10.7%) while it decreased in Switzerland (-1.1%).

The data for Croatia, the new EU Member State as of July 2013, revealed a decrease in agricultural income per work unit, Indicator A (-10.8%).

Main factors in income development for 2012

Indicator A combines the development in net value added at factor cost (factor income) and the trend in agricultural labour input.

In EU-27, there was a slight decrease (-0.2%) in factor income for 2012 compared with 2011 in real terms (which represents an increase of 1.2% in nominal terms), while agricultural labour input also decreased slightly (-0.2%).

Factor income development in 2012 was mainly attributable to small increases in the output values of both crop production (+0.9%) and animal production (+3.2%). The output value of agricultural services showed a slight increase in 2012 compared with 2011 (+0.7%). On the other hand, the output value of inseparable nonagricultural secondary activities dropped (-1.2%).

Even though the overall output of the agriculture industry grew by 1.8%, according to the second estimates, this was counterbalanced by an identical increase of 1.8% in the value of intermediate consumption. This led to factor income remaining unchanged.

The stable level of agricultural income per labour unit in 2012 compared with 2011 results from a combination of small decreases in the volume of crop and animal production compensated by slight increases in prices.

Higher prices in agriculture (+6.6%) led to an increase of 1.8% in the value of total agricultural output in basic prices. On the other hand, the volume of agricultural output decreased (-3.0%).

For intermediate consumption, the increase in value (+1.8%) also resulted from a rise in prices (+4.9%) and a decrease in volume (-1.5%). As a result of both of these trends, i.e. the developments in output and intermediate consumption, the gross value added in agriculture in 2012 showed the same trend (+1.8%) as the value of total agricultural output at basic prices.

The gross value added at basic prices accounted for 39.3% of the total output value.

Overall, subsidies were worth more than EUR 55 thousand million in 2012, accounting for around 38% of the factor income.

A closer look at output

The value of the output of agricultural goods at basic prices increased by 1.9% in 2012 compared with 2011. This small increase was driven by a decrease in volume (-3.2%) and an increase of 6.9% in the output prices of agricultural goods. The value of crop output at basic prices, which accounted for 52.2% of the total output, remained at almost the same level. On the other hand, animal output, at around 40% of total output, showed a rise of 3.2%. Agricultural services increased slightly (+0.7%) while secondary activities decreased (-1.2%).

Crop output

The value of crop output at basic prices increased slightly in 2012, compared with 2011 (+0.9%), while animal output showed a larger increase (+3.2%). The reason for the stability of crop output was a combination of a decrease in volume (-5.3%) and the increase in producer prices (+6.9%). Price increases were observed for almost all main agricultural crops. The largest price increases in 2012 were observed for cereals (+10.0%), potatoes (+9.2%), oil seeds and wine (+8.8%). A small decrease in the producer price was observed only for sugar beet (-0.2%) in 2012 compared with 2011. On the other hand, the changes in volume were negative for most agricultural crops (wine, -15.7%; potatoes, -14.1%) while oil seeds, fruits and cereals showed a volume decrease steeper than -7%.

Ten Member States reported declines in total crop output in 2012 (see Table 4), which were most marked in Romania (-28.9%), Slovakia (-11.0%) and Slovenia (-7.9%). The largest increases in the value of crop output were observed in Latvia and Luxembourg (+31.4%), Estonia (+16.4%), Lithuania (+15.1%) and Belgium (+13.5%).

The value of crop output at basic prices in EU-15 increased by 3.2% in 2012, while in EU-12, it decreased (-8.6%). Basic prices in real terms rose by 6.5% in EU-27, as a result of the increase of 7.1% in EU-15 and 3.5% in the other Member States.

Animal output

The rise in the value of animal output recorded in 2012 (+3.2%) was mainly due to higher producer prices (+3.8%) while the volume of animal output declined slightly (-0.5%). At the EU-27 level, prices rose for most of the groups included in animal output. For animal products, the value of milk, which accounted for 13.6% of the overall output in 2012, decreased (-4.4%) compared with 2011, mainly due to the decrease in the price of milk (-4.7%). On the other hand, the volume remained almost at the same level (+0.3%) compared with 2011. As regards egg production, the large increase in the producer price (+30.6%) brought about an increase of 28.5% in value when compared with the previous year.

For animals (meat and livestock), the value in basic prices was up 5.5%. Higher producer prices were the main reason for this in almost all animal groups: equines (+13.1%), pigs (+9.7%), cattle (+8.4%) and poultry (+2.3%). The only (slight) decrease in the price development was observed for sheep and goats (-1.0%). As regards volume, all categories (except poultry, +2.6% and milk, +0.3%) showed a drop compared with 2011: sheep and goats (-2.3%); cattle (-2.2%) and pigs (-1.8%).

As presented in Table 4, as many as 20 out of the 27 EU Member States reported higher values for animal output in 2012 than in 2011, with the most noticeable increases seen in Spain (+9.8%), Hungary (+6.8%) and Romania (+5.5%). Member States such as Sweden (-5.9%), Slovakia (-4.8%) and Lithuania and Luxembourg (-2.0%), on the other hand, reported lower output values in real terms than in the previous year.

A medium-term analysis (2005-2012)

In order to place the most recent income developments in a medium-term perspective, Indicator A is expressed in index form, with the year 2005 chosen as reference year. According to the trend of Indicator A, Member States can be divided into two groups. The first group includes those countries for which agricultural income in 2012 was higher than in 2005. This group comprises twenty-two Member States. In fifteen of these, the level of agricultural income per work unit reached in 2012 was more than 20 index points higher than in 2005. The most marked trends were reported by Estonia (+119%), Slovakia (+95.9%) and Lithuania (+81.6%).

There were five Member States which had a negative trend for Indicator A in 2012 compared with 2005:- Cyprus, Luxembourg, Malta, Ireland and Italy.

Higher intermediate consumption (+1.8%) and stable labour input

=Value of intermediate consumption was higher in 2012 than 2011

In 2012, at the EU level, the value of intermediate consumption increased by 1.8% in real terms compared with 2011, due to a combination of higher prices (+3.3%) partially offset by a decrease in volume (-1.5%). As regards the components of intermediate consumption, values for most items rose moderately: financial intermediation services indirectly measured (+4.5%); feedingstuffs (+3.3%); energy and lubricants (+3.2%) and plant protection products (+1.9%). The only declines compared with the previous year were observed in the values of seeds and planting stocks (-1.9%) and veterinary expenses (-1.1%).

The value of intermediate consumption rose in twenty-two EU Member States in 2012, compared with the previous year. The most marked increases were seen in Latvia (+12.6%), Luxembourg (+8.6%) and Estonia (+8.0%). Out of the five countries which reported a decrease in 2012, the steepest declines were observed in Energy prices rose in all Member States in 2012, compared with 2011 (except Denmark, where a slight decrease, -1.3%, was recorded). The increase of energy prices ranged from 1.1% in the United Kingdom to 11.1% in France. The largest increases in the prices of fertilisers and soil improvers were recorded in Bulgaria (+14.9%), France (+12.6%), Greece (+11.8%) and Romania (+10.1%).

Agricultural Labour Input remained at the same level in 2012

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