Farming News - Agricultural businesses bouncing back, new report reveals
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Agricultural businesses bouncing back, new report reveals
Monahans' South-West Market Research Report, surveyed businesses operating in the agricultural sector, revealing that:
- All respondents reported that their business was in a better position than it was 12 months ago.
- Half reported seeing an increase in turnover in the last financial year (averaging 72% – the highest increase of any sector).
- Respondents reported a 78% increase in headcount – the highest of any sector.
- Energy prices, supply chains and digital transformation were the biggest challenges faced in the last 12 months.
- Respondents believe that inflation / rising operational costs, supply chain, and generating new business, will be the biggest challenge(s) faced in the next six months.
- All respondents reported making redundancies in last 12 months – the highest percentage of any sector.
- Respondents were tied 50/50 on whether the election would improve market conditions.
Andrew Perrott, Partner, commented on the findings:
"The questionable British summer in 2023 had adverse effects on the harvest season which put pressure on farming businesses. Fast forward a year, and it is encouraging to see half (50%) reporting they are in a better position than the previous year despite the variable preharvest weather we are currently seeing. Market buoyancy is evident, with half of businesses reporting the highest turnover of all sectors.
"To keep up with demand, businesses in the agriculture sector reported the highest increase in headcount (78%) across all sectors, also indicating stability in the market. Energy prices, supply chains and digital transformation are amongst the biggest challenges faced by businesses over the last 12 months. Looking ahead to the next six months, inflation/rising operational costs, supply chain and generating new business are areas of concern and respondents were tied on whether or not the election would improve conditions, with a 50/50 split."