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Costs of regulation may render some farm businesses unprofitable

by 5m Editor
12 September 2006, at 11:05am

UK - In the latest analysis of the Scottish agricultural industry from Lloyds TSB Scotland, chief economist, Professor Donald MacRae, comments on the cost of regulation.

The Department of the Environment, Food and Rural Affairs (DEFRA) recently produced an assessment of the likely economic impact of forthcoming regulation on the farming industry in England, in which they estimate that increased regulation will have a minimal impact on all farming sectors with the exception of dairy, grazing livestock in ‘less favoured areas’ and pigs and poultry.

Around 14 per cent of production from the pig sector is likely to become unprofitable as a result of compliance with the Integrated Pollution Prevention and Control directive and changes to the Nitrate Vulnerable Zone Action Programme.

These will also directly affect poultry producers. The combined effect is likely to make an additional 10 per cent of poultry production unprofitable.

Source: Easier Business News

5m Editor