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THE WHEAT BUSINESS

Wheat, the most widely grown cereal crop in the UK, is sown on two-fifths of Britain’s arable land, with a total harvest of 12–17 million tonnes per year.

Farming and the economy

image: tractor

Farming contributes over £5 billion to the UK economy. The total labour force employed in agriculture in the UK is 541,000. Overall, 1.8% of the UK’s workforce is directly employed in farming.

Agriculture plays a crucial role in a number of industries within the UK food chain. With an annual output of around £140 billion and generating some 3.8 million jobs, the UK food chain accounts for almost 8% of the total economy and 14% of all employees in the UK.

Rural tourism contributes an estimated £14 billion to the economy.

Average spend per household on groceries rose 3% from 2008-2009, from £3,412 per household per year to £3,550 per household per year. Average spend per household on bread rose 2%, from £74 per household per year to £76 per household per year. Average spend per household on breakfast cereals rose 6%, from £59 per household per year to £62 per household per year.*

Using the land

Farmers manage over 75% of the total land area of the UK. Here is the land use for one year (2006).

Land use Hectares (000s) Per cent (%)
Total crops 4340 23.2
Bare fallow 150 0.8
Set-aside scheme land 513 2.7
Grass leys (all grass under 5 years old) 1137 6.1
Permanent pasture (all grass over 5 years old) 5967 31.9
Rough grazing 4491 24
Other 268 1.4
Total agricultural area 18,713 100

Wheat and other cereals

Cereal crops are grasses that produce grains that humans and animals eat. There are several different types of cereal: wheat, barley, oats, maize and rice.

Wheat
  • The 2009 UK harvest produced 14–18 million tonnes of wheat, more than 15% of the crop.
  • About 40% of the UK crop is used to feed animals such as pigs, chickens and cows, the remainder for human consumption.
  • Flour made from wheat is used to make bread, biscuits and many other food products.
Barley
  • Barley is the second most widely grown crop in the UK. In 2009 the UK produced around 6.75 million tonnes and exports 10% of the crop.
  • 50–60% of the UK crop is used to feed animals. Some of the rest is used in the brewing and distilling industry to produce malt, beer and spirits.
Oats
  • The UK produced around 700,000 tonnes of oats in 2009.
  • About 60% is used for food products such as muesli, oat-based snacks and multi-grain breads. More than a third of British oats are fed to animals, including as a specialist feed for racehorses.

Farming issues

UK agriculture is in a serious economic recession. All sectors have been affected by a number of issues.

Farming incomes

Total income from farming in the UK in 2003 was estimated to be £3.2 billion. It is now 77 per cent above the low point in 2000, when the average UK farmer earned just £8,267 from farming.

Prices

The collapse in world commodity prices at the end of the 1990s had a big effect on farming; cereal prices fell 40% between 1995 and 2000. Following recent reform of the common agricultural policy and a weaker Euro, EU grain prices have been brought close to world lows for many grains. A wider range of factors from outside the EU now affect prices here in the UK.

Workforce

Farming employs 557,000 farmers and farm workers. Nearly 60,000 jobs were lost in the UK's agricultural and horticultural industry in the three years to June 2001. As the industry recession continues, many farmers are retiring, resulting in skills shortages.

The common agricultural policy (CAP)

The CAP was developed to ensure that European Countries could supply themselves with food. The CAP offers guaranteed prices for farmed commodities, but surplus crops meant that measures – such as 'set-aside' – were needed. Better technology means the 90% of land being used is more productive, plus the set-aside land benefits bird, mammal and insect populations.

Farmers and the environment

As concerns about climate change and the impact of humans on the environment increase, farmers need to be aware of the effect their activities have on the land. Find out more here.


*Source: TNS Worldpanel, 52 w/e 29 Nov 2009 vs. Yr Ago


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