When comparing the 2003 annual data to 2002 data, intermediate consumption decreased by 5.2 per cent, while the final production at basic prices (after taking into consideration subsidies and deducting losses) declined by 2.3 per cent from Lm57.9 million in 2002 to Lm56.6 million in 2003.
A drop of Lm2.0 million (-9.8 per cent), from Lm20.8 million to Lm18.8 million in the value of forage and vegetable production was mainly responsible for the drop in the final production at basic prices.
Although ‘livestock products’ declined by 2.9 per cent from Lm22.6 million in 2002 to Lm21.9 million in 2003, mainly due to declines in the value of beef and pork by 19.7 per cent and 4.8 per cent respectively, this drop was marginally off-set by an increase in the value of ‘other animal products’ -from Lm14.1 million in 2002 to Lm15.6 million in 2003 (+9.8 per cent).
Subsidies played a significant part in farmers’ income in 2003. Whereas, in 2002, subsidies on production amounted to 2.7 per cent of gross value added, these increased to 13.8 per cent of gross value added in 2003.
Subsidies were used to compensate farmers’ loss of income from lower prices obtained due to the removal of levies. Final production at producer prices declined by 8.0 per cent from Lm57.1 million to Lm52.5
million. To make up for this drop, farmers were given
Lm4.1 million in subsidies as
compensation.
In real terms, the total factor income of the agricultural sector (constant 1998 prices), declined by 0.8 per cent from Lm24.9 million in 2002 to Lm24.7 million in 2003. Factor income declined in real terms as the marginal increase in nominal income was offset by an increase in the general level of prices.
When compared to 2002, the overall output of the agricultural industry in 2003 was 3.3 per cent lower in real terms. The decline in output was a result of contrasting developments in the crop and animal sectors.
Whereas, in real terms, the value of crop products declined from Lm18.6 million in 2002 to Lm16.6 million in 2003 (-10.8 per cent), the value of animal products in real terms increased from Lm12.7 million in 2002
to Lm13.8 million in 2003
(+8.7 per cent).
In real terms, the slaughtering of livestock declined by 4.0 per cent, when compared to 2002.
In real terms, intermediate
consumption dropped by 6.2 per cent in 2003, when compared to the previous year. Animal
feeding stuff, which dropped
by 7.2 per cent in real terms,
was mainly responsible for the decline in the value of intermediate consumption.
Income per annual work unit (AWU) declined by 4.8 per cent from Lm5,786 in 2002 to Lm5,510 in 2003. The decline in factor income in real terms (per AWU) was the result of both the decline in total factor income in real terms and due to an increase in the total effort in agriculture measured in AWU. Full-time equivalent work in agriculture increased by 4.2 per cent when compared to 2002.
Net entrepreneurial income (profits) at current and real prices amount to 90.7 per cent of total factor income. Since agriculture in Malta is mainly a family concern, the work force is also coming from the family. There is only a small amount of full-time workers that are salaried. Net entrepreneurial income declined by 1.8 per cent, at constant prices, when compared to 2002, while non-salaried labour input increased by 0.8 per cent.
This resulted in a decline in net real entrepreneurial income per non-salaried annual work units of 2.5 per cent from Lm 5,700 in 2002 to Lm 5,558 in 2003.