It is estimated that the total production value of the agricultural industry in 2023 will amount to 89 billion ISK, an increase of 8% from 2022. The increase can be attributed to higher producer prices. It is estimated that 65% of the production value comes from animal husbandry and 27% from the crop productions.
It is expected that the intermediate consumption will be 56 billion ISK in 2023, an increase of 4% from the previous year. The estimate assumes similar volume, but an increase in prices. Based on these assumptions, it is estimated that the intermediate consumption will be about 63% of the total production value of agriculture, which is similar percentage to 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 2022 and available information on changes in volume and prices of agricultural products in the year 2023.
Production value 82 billion in 2022
The total production value of the agricultural industry was estimated at 82 billion ISK in 2022. Animal husbandry, i.e. production of animals and animal products, accounts for 65% of the total production value, while the value of crop products accounts for 27%. Income from agricultural services and inseparable non-agricultural secondary activities account for 1% and 8% respectively.
The total production value of the agricultural industry increased by 14% from the previous year. The increase can be attributed to both higher producer prices and increased subsidies, which were granted to respond to price increases in the main inputs following the Russian invasion of Ukraine.
The intermediate consumption was estimated at 54 billion ISK in 2022, an increase of 16% from the previous year. It is the largest item of expenditure and accounts for 66% of the production value.