Agriculture in the United Kingdom 2021

Each year, the Department for Environment, Food, and Rural Affairs (Defra) publish a report that provides an overview of agriculture in the UK for the previous year. Last week, they published the report for 2021.

For over 30 years, Primetics has been an industry-leading provider of ERP solutions to agribusinesses across the UK, and our success is based on our dedication to the industry and our customers. Reports like this one enable us to track trends and new insights while also ensuring that our solutions continue to provide the functionality that the various industries we serve require.

Here’s a quick look at some of the findings from the Agriculture in the United Kingdom 2021 report.

Agriculture in the United Kingdom

As we all know, the year 2020 saw two events of enormous global significance for agriculture and the larger food chain. Brexit and the COVID-19 pandemic. There were many concerns about how this would affect the industry in 2021, and it undoubtedly did, whether it was through further price increases, additional staff shortages, or ongoing supply issues. Despite this, we saw positive increases in Total Farm Income, agriculture’s contribution to the UK economy, and total livestock and crop output. So, what did the numbers look like?

Across 2021, agriculture contributed £11.2 billion to the UK economy. This was a 14% increase, or £914 million more than 2020. Total Income from Farming (TIFF) is income generated by agricultural production including subsidiaries and represents a company’s profits and reimbursement for work done by owners and other unpaid employees. This measure increased by 14% from 2020 to £5 billion. This made it the third highest TIFF since 2000. The cost increases seen across agricultural sector in 2021 were offset thanks to increases in total livestock and crop outputs. Speaking of which, let’s take a look at the outputs of crops and livestock across 2021.

Crops

As mentioned, cost increases were offset thanks to an increase in crop outputs. Across 2021, total cereal production of wheat, barley, oats and minor cereals in the UK was just under 22.4 million tonnes, an 18% increase compared to 2020. This increase was due to a combination of increased area and higher average yields. The value of production also increased, by 46%, to just over £4 billion due to a combination of higher prices and increased production.

Harvested production of wheat increased by 45% to just under 14 million tonnes, following a particularly small 2020 production. The value of wheat production also increased and was 75% higher at £2.7bn.

Oilseed rape has seen fluctuation in the market environment as well as the loss of neonicotinoid seed treatments and increasing threats from pests and diseases. Additionally, 2021 saw the lowest planted area since 1986 with just 352,000 hectares. All these factors combined resulted in a 5.5% decrease in production to around 981,000 tonnes. Despite this, the value of production increased by 36% to £488m, again due to higher prices. The value of sugar beet production also increased and was 30% higher than last year at £216m.

Livestock

The livestock production system is designed for maximum output, with every link in the chain operating at full capacity. When any link in this chain is affected, it has a significant impact on the entire production line. The COVID-19 pandemic undoubtedly continued to have an impact on the industry, with additional staff shortages and difficulties in harvesting and shipping products due to lockdowns.

Total meat production in 2021 fell by 0.8% to 4.1 million tonnes, the first year-on-year drop since 2012. This decrease in production occurred alongside increased panic buying of meat products in the lead up to lockdowns, placing heavy strain on the industry and its workers.

Cattle and sheep meat production decreased, but pig meat production increased by 4%. Poultry production has remained constant, accounting for 48% of home-fed meat production. Despite this, total livestock output was £1.6 billion, a 6.8% increase from 2020.

You can find the report here if you want to delve deeper into the report's findings or look for some additional statistics that we didn't cover.

As always, Primetics is optimistic about the future and looks forward to working with agribusiness across the UK to continue improving productivity, efficiency, and profitability. If you'd like to learn more about how we can support your company, please explore the rest of our website, or ask us a question using the form below.