The strength of the pig sector and the low price of feed avoid the collapse of the Agrarian Income due to the drought

In its agrarian balance for 2017, COAG, after analyzing the first estimate of Agrarian Income for this year, made by the Ministry of Agriculture, has underlined how the strength of the pork sector and the fall of quotations of feed have prevented the collapse of Agrarian Income due to the severe drought. Also, from this agrarian organization it is noticed that the “macro-data” mask some “micro-benefits”.

“The statistic says that if your neighbor has two new tractors and you do not have one, both of you have bought one. It is logical that farmers indignemos us when the official data are excessively triumphant in a year marked by a historical drought and the shortage of water for irrigation. Without water, the harvests can not be carried out and the price increases do not serve to compensate for the significant drop in production. We speak of an ill-fated year for the most professionalized farms”, lamented Miguel Blanco, General Secretary of COAG.

According to official statistics, the total Agrarian Income in real terms during the year 2017 has experienced an increase of 4% compared to 2016. This increase is mainly due to an increase in the value of animal production (a record figure of 49,192 million euros). the rise in prices in sectors as powerful as pigs (+ 10.6%), third in importance after fruits and vegetables, and birds (chicken and turkey + 10.7%). To all this, joins the decline in production costs of 1.3%, by lower prices in feed, (influence of international prices to the decline of raw materials), heading that marks the global trend of this heading for its high weight on the rest of expenses (49.4%). The detailed analysis reveals that after, the data of cost reduction, hides a rise in energy and lubricants of 8.8% and financial intermediation services (banking) of 7.4%, among others.

The value of agricultural production fell by 1.4% due to the effect of the drought on cereal crops (-28%), wine (-14%) and olive groves (-8.2%), which prevent further fall accused by the upward trend in prices

The potato data hits the ground, after a reduction in prices during the last campaign of 49%. A separate comment deserves fruit and vegetables, which, according to the first estimate of MAGRAMA, have experienced a rise in prices of 0.7% and 7.2% respectively. However, the prices received by farmers have fallen more than 50% compared to the previous season, passing in the case of the stone fruit of a few quotes in the field in 2016 from 0.64 € / kg to 0.29 € Kg in the current year.

Although in the period 2013-2017 the agrarian income has recovered 11.2% of its value, in the last 15 years the evolution offers a less triumphant photo: since 2003, farmers and ranchers have lost 11.5% of their income. real income

Evolution of agrarian income in real terms (2003 – 2017)

  Renta agraria real Variación
2003 26.323,90
2004 24.485,49 -7,0%
2005 21.316,46 -12,9%
2006 20.315,14 -4,7%
2007 22.550,80 11,0%
2008 19.274,35 -14,5%
2009 17.641,31 -8,5%
2010 19.571,85 10,9%
2011 18.557,90 -5,2%
2012 18.518,21 -0,2%
2013 19.259,66 4,0%
2014 19.482,88 1,2%
2015 19.941,42 2,4%
2016 21.163,37 6,1%
2017 23.298,83 4,0%
Fuente: Ministerio de Agricultura y Pesca, Alimentación y Medio Ambiente.

Source: COAG

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