World Grain - May 2024 - 16

COUNTRY FOCUS
KEY FACTS
FOCUS ON
THE UNITED
KINGDOM
Unseasonably wet weather again expected
to lower crop yields, production
by Susan Reidy
Unseasonably wet and windy weather lowered 2023 yields and production
levels for nearly all of the United Kingdom's main cereal
crops, and similar conditions are dampening prospects for 2024.
The UK experienced its second wettest August through February
since 1837, when records began, according to the Agriculture and
Horticulture Development Board (AHDB). A lower-than-usual winter
area is expected with considerably lower winter crop yields, it said.
The spring planted area is likely to be higher than normal, but at
the end of March the AHDB said it was too early to estimate areas
or yield potential.
All main cereal crops saw production drop in 2023, according to
the Department for Environment Food and Rural Affairs (Defra).
Wheat harvest in 2023 was estimated at 14 million tonnes, a drop of
10% from 2022, while oat production fell 18% to 830,000 tonnes.
Barley production was just under 7 million tonnes, a decline of 5.7%,
while rapeseed production fell 11% to 1.2 million tonnes, Defra said.
Agriculture in the UK is intensive, highly mechanized and efficient
by European standards, but accounts for only 0.6% of the UK's gross
domestic product. The industry produces 58% of its food
needs but is heavily reliant on imports to meet the
demand of the UK consumer, said the International
Trade Administration (ITA).
In addition to the weather challenges,
the UK is dealing with the
fallout of Brexit, its official departure
from the European Union in
2020. Leaving the EU led to
changes in the UK's agricultural
production and trade policy.
The UK has since signed
Free Trade Agreements with
Australia, New Zealand and
the free trading bloc known as
the Comprehensive and Progressive
Agreement for Trans-Pacific
Partnership. It is negotiating further
agreements with Canada, the Gulf
Cooperation Council and India.
16
Capital: London
Population: 68,138,484 (2023 est.)
Religions: Christian (includes Anglican, Roman
Catholic, Presbyterian, Methodist) 59.5%, Muslim
4.4%, Hindu 1.3%, other 2%, unspecified
7.2%, none 25.7% (2011 est.).
Location: Western Europe, islands - including
the northern one-sixth of the island of Ireland
- between the North Atlantic Ocean and the
North Sea; northwest of France.
Government: Parliamentary constitutional monarchy.
Chief of state: King Charles III (since Sept.
8, 2022); head of government and prime minster:
Rishi Sunak (since Oct. 22, 2022).
Economy: High-income, diversified non-EU European
economy and the sixth-largest importer
and exporter. The UK is a major international
trading power and is the second largest economy
in Europe. GDP growth is projected to pick
up from 0.5% in 2023 to 0.7% in 2024 and 1.2%
in 2025. Headline inflation will subside from historically
high levels but remain above target over
most of the projection period. Core inflation will
linger at 3.8% in 2024 and 2.6% in 2025 on the
back of the tight, albeit easing, labor market.
The well-diversified economy includes manufacturing
and industry, agriculture and services and
hospitality. The largest contributors to GDP are
services, tourism, construction and manufacturing.
The service sector, which includes entertainment,
financial and retail services, contributes
the most to the economy at 72.79% in 2020.
Industry is the second largest contributor at
16.92%. The UK's exit from the European Union,
popularly called Brexit, has been costly to the
economy and marked by significant domestic
political uncertainty and tensions with the EU.
The size of the economy dropped by an estimated
1.5% and the available labor pool dropped.
Trade barriers have increased, leading to weaker
investment and exports. Future challenges include
managing the post-Brexit transition, addressing
regional economic disparities, tackling
labor shortages in certain sectors and grappling
with public debt.
GDP per capita: $47,600 (2022); inflation: 7.92%
(2022 est.); unemployment: 3.73% (2022 est.).
Currency: British pounds (GBP); .80 British
pound equal 1 US dollar (April 12, 2024).
Exports: $1.024 trillion (2022): cars, gold, gas
turbines, crude petroleum, packaged medicines
(2021).
Imports: $1.112 trillion: gold, cars, natural gas,
crude petroleum, packaged medicines (2021).
Agriculture: 0.6% (2022) of GDP and 1.005% of
the labor force (2022).
Internet: Code: .uk; 64.99 million (2021 est.) users.
Source:
CIA World Factbook/World Bank/OECD
May 2024 / World Grain / World-Grain.com
http://www.World-Grain.com
World Grain - May 2024

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