It is estimated that the total production value of the agricultural industry in 2022 amounted to 81 billion ISK, an increase of 12% from 2021. 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. It is estimated that 65% of the production value fall into animal husbandry and 28% to crop production.
It is expected that the intermediate consumption will be 54 billion ISK in 2022, an increase of 14% 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 66% 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 2021 and available information on changes in volume and prices of agricultural products in the year 2022.
Production value 72 billion ISK in 2021
The total production value of the agricultural industry was estimated at ISK 72 billion in 2021. 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 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 4.4% from the previous year. The production value of animal husbandry increased by 3.9%, while the production value of crop products increased by 3.6%.
The intermediate consumption was estimated at ISK 46.9 billion in 2021, an increase of 7% from the previous year. It is the largest item of expenditure and accounts for 65% of the production value.