MaltaMedia.com

In 2008, factor income of the agricultural sector at current market prices fell by 5.4 per cent due to higher expenditure and lower subsidies, but was mitigated by increased production, the National Statistics Office (NSO) said on Thursday.

In 2008, the final output of the agricultural industry at producer prices rose by 8.5 per cent to an estimated €125.0 million over 2007, on account of a 5.3 per cent increase in volume and a 3.0 per cent rise in producer prices.

Characterising this result was a 10.8 per cent rise in the producer value of crop production, due to a 9.7 and a 1.0 per cent increase in production and producer prices respectively. The producer value of forage production rose by 9.8 per cent on account of increased volume (+20.6 per cent), although prices obtained by forage producers declined by 9.0 per cent. Vegetable producers saw the value of their production rise by 7.6 per cent, mainly on account of higher prices (+5.1 per cent). On the other hand, the producer value of Potatoes fell by 14.1 per cent, on account of a 13.9 per cent price decline, with production remaining fairly stable over 2007.

The producer value of fruit production advanced by 48.5 per cent on account of a 43.0 per cent rise in volume, complemented with a 3.8 per cent rise in prices. However, the prices of Peaches and Citrus fruits declined by 9.8 and 7.4 per cent respectively, albeit production increased. Grape producers fetched 11.9 per cent more in prices over 2007, mainly because of a rise in the price of wine grapes (+16.1 per cent), with dessert grape prices falling by 9.4 per cent. The volume of grapes produced in 2008 increased substantially, by 48.3 per cent, on account of a good harvest both in dessert and wine grapes.

The producer value of livestock rose by 5.6 per cent as a result of increases in the volumes of pigs and broilers slaughtered, by 6.1 and 9.9 per cent respectively. Similarly, the producer value of animal products rose by 12.0 per cent on account of a 26.6 per cent rise in the price of raw milk, mitigated by a 24.2 per cent decline in the price of eggs.

Total subsidies absorbed by the industry in 2008 amounted to €18.4 million, down by 18.4 per cent from €22.6 million in 2007. Subsidies directly linked to production declined by 3.3 per cent, to €11.4 million, whereas subsidies not directly linked to production fell by 35.0 per cent to €7.0 million.

Intermediate consumption, which measures expenditure in the production process, rose by 12.4 per cent to €80.5 million. This increase was mainly attributable to a rise in expenditure on energy (+13.1 per cent), fertilisers (+31.2 per cent) and animal feed (+17.0 per cent). In 2008, fixed capital consumption, or depreciation, rose by 3.0 per cent to €4.0 million, up from €3.9 million a year earlier.

Factor income, which is the result of the developments in agricultural output, subsidies and intermediate consumption, fell by 5.4 per cent when compared to 2007, amid the decline in subsidies absorbed by the agricultural industry. Excluding subsidies, factor income rose by 1.9 per cent to €40.5 million in 2008, on account of increased final production (+8.5 per cent), mitigated by higher intermediate consumption (+12.4 per cent). In 2008, entrepreneurial income (-5.9 per cent) absorbed 92.7 per cent of the total factor income. Dependence on subsidies within factor income fell by 4.9 percentage points (-13.7 per cent), from 36.2 per cent in 2007 to 31.3 per cent in 2008.