Profitability report for agriculture and horticulture 2008

Tom Coulier

December 2009

The annual profitability report contains a technical and economic analysis of agricultural and horticultural activity in Flanders. The results for 2008 are based on the processing of the accounting data of 713 Flemish agricultural and horticultural businesses that are part of the Flemish Farm Accountancy Data Network (LMN).

The drawing up of the report was started after closure of the business accounts on 30 June. A thorough quality control of the data preceded its publication. This quality control is required in order for the FADN, the European Farm Accountancy Data Network, to be able to use the data. In addition, the department applies its own control mechanisms. From now onwards, the profitability report will be published annually before the end of the year following the financial year to which it refers.

From the report it is clear that in 2008 it was hard for the Flemish agriculture and horticulture sector to maintain the good results of 2007. 2007 was a good year for dairy cattle, arable farming and fruit growing.

The income of agricultural businesses dropped sharply in 2008. The dairy cattle sector achieved the best results, followed by the pig sector and arable farming. Beef cattle farms obtained the least positive results. The price of milk was good, and prices for arable products, pigs and beef cattle were acceptable. However, the good price level in the agricultural sector was countered by the high input costs. The cost of feed rose most. Rising costs of fertilisers, energy and land and buildings capital were also important factors.

The results for horticulture businesses were less good in 2008 than in 2007. The fruit sector scored the best result, followed by mushrooms. Cut flower, pot plant and outdoor vegetable businesses achieved the least positive results. The prices for horticultural products were not exceptional. Only for pears 2008 was a year with very good prices. The moderate prices combined with the increased costs, especially for energy, and, to a lesser extent, more expensive fertilisers, were responsible for the low income.

Original version:

Coulier T.(2009)
Rentabiliteitsrapport Land- en tuinbouw 2008
Departement Landbouw en Visserij, Brussel.

Departement Landbouw en Visserij
Ellipsgebouw (6de verdieping) - Koning Albert II-Laan 35, bus 40 - 1030 Brussel
Tel. 02 552 78 20 - Fax 02 552 78 21