-Caveat Lector-

>From http://www.telegraph.co.uk/news/main.jhtml?
xml=/news/2002/10/23/nfarm23.xml&sSheet=/news/2002/10/23/ixnewstop.html

£65bn food industry 'on brink of collapse'
By Robert Uhlig, Farming Correspondent
(Filed: 23/10/2002)

Britain's food industry, which employs 500,000
people, is on the brink of collapse, a survey of farm incomes said yesterday.

The study of 1,000 of the most successful farms found that it no longer made economic
sense for farmers to produce food.

Deloitte and Touche's report, the largest of its kind, predicted that farmers would 
lose £8
an acre on food production this year, with no likelihood of recovery in the foreseeable
future. It said the Government was partly to blame for imposing too many regulations.

Mark Hill, who heads the company's farm and agriculture department, said: "Organic egg
farming is very profitable and, under EU law, no more than 12 chickens are allowed per
square metre.

"But the Government, in its wisdom, wants to gold plate that and is insisting on just 
six birds
per square metre. With one piece of legislation, it is sending our very successful 
organic
egg industry offshore."

More and more food is being imported, helping to create a £20 billion trade deficit in 
an
industry that generates £65.7 billion a year. Grampian, a supplier of fresh chicken and
nuggets to all British supermarkets, has closed a factory in Scotland and opened two in
Thailand, where chicken and labour costs are much lower.

McCain is producing its oven chips in Poland, partly because potatoes there are 
cheaper but
also because many British potato growers have switched to less high-risk crops such as
sugar beet.

Mr Hill said: "If significant numbers [of farmers] give up, food processors and 
agricultural
suppliers will lose critical mass and their businesses will collapse."

Even the Government's environmental schemes, seen as a lifeline, did not make economic
sense, the report said. It found that environmental support was worth little more than 
£2 an
acre.

He said that only big, highly capitalised farms were likely to survive - the opposite 
of the
Government's desire for small environmentally friendly family farms.

"We want a statement of long-term support from the Government. Then farmers will have
the confidence to invest. Without it, there is no future for farming."

Mr Hill said that, bleak as the survey was, it was probably too optimistic. It had not 
included
Highland and livestock farmers, partly because they could not afford the company's
services.
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A<>E<>R
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Forwarded as information only; I don't believe everything I read or send
(but that doesn't stop me from considering it; obviously SOMEBODY thinks it's 
important)
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profit to those who have expressed a prior interest in receiving this type of 
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"Always do sober what you said you'd do drunk. That will teach you to keep your mouth
shut."
--- Ernest Hemingway

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