Farming downturn hits allied sectors
10 February 1998
Farming downturn hits allied sectors
THE slump in farm incomes is hitting allied supply industries as farmers cut back on investment, household spending and environmental improvements, the National Farmers Union (NFU) warned.
High anxiety is running through the farm machinery sector, livestock markets and fertiliser and agrochemicals trade.
Fertiliser sales volumes dropped 20%-25% last year and sales of cattle and sheep feed 15%-20%. Seed fell 6% and agrochemicals 15%. It is feared worse could be on the way.
Feed manufacturers fear they may have to cut production of poultry feed as farmers use more home-made feed to cut costs. The strong Pound has also encouraged big imports of poultry.
Tractor registrations dropped by 18% to 15,272 last year. Last month they were half the level of a year ago. The British Agricultural and Garden Machinery Association says it is receiving more calls than ever about how to make people redundant.
The Livestock Auctioneers Association reports sheep prices down 40%-50%.
Meanwhile FPD Savills expects farmland prices to fall further this year, particularly for lower grades.
Now the NFU is inviting allied industries to join forces at the Countryside March in London on March 1. Farming organisations plan to light beacons across the country on February 26 to highlight their plight.
- Financial Times 10/02/98 page 9