It is estimated that the total production value of the agricultural industry in Iceland in 2021 will amount to 71 billion ISK, an increase of 4.4% from 2020. It is estimated that 62% of the production value fall into animal husbandry and 30% to the crop productions.
It is expected that the intermediate consumption will be 49 billion ISK in 2021, an increase of 11% from the previous year, which is far in excess of the increase of the production value. The estimate assumes a slight increase in volume, but a significant increase in prices. Based on these assumptions, it is estimated that the intermediate consumption will be about 69% of the total production value of agriculture, somewhat more than last year. It should be noted that the estimate of the intermediate consumption is subject to some uncertainty and consequently the share of other expenditure items as well.
The estimate is based on the final assessment for the year 2020 and available information on changes in volume and prices of agricultural products in the year 2021.
Production value 68 billion in 2020
The total production value of the agricultural industry was estimated at 68 billion ISK in 2020. Animal husbandry, i.e. production of animals and animal products, accounts for 64% of the total production value, while the value of crop products accounts for 28%. Income from agricultural services and inseparable non-agricultural secondary activities account for 1% and 7% respectively.
The total production value of the agricultural industry increased by 7.4% from the previous year. The production value of animal husbandry increased by 1.6%, while the production value of crop products increased by 21.3%. The increase in the production value of crop products is due to an increase in volume and price but mostly to increased subsidies.
The intermediate consumption was estimated at 43,8 billion ISK in 2020, an increase of 3,2% from the previous year. It is the largest item of expenditure and accounts for 64% of the production value.