Food and Agri Business
- Created by: SusannahJennings
- Created on: 09-01-18 14:59
Peter Mathias,1983
Land ownership in the 18th c UK affected three main groups
1/ Landowners-land as units of ownership-ran farms to supply their housholds with produce, not commercial
2/ Those with rights over the cultivation off land- a mixed group,small freeholders,owner cultivators, the rent paying, the farmer who paid rents and employed labour, small holders and squatters-concerned with production
3/ farm laborers without ownership or rights over land working for wages
opportunities for social mobility at the time
Mathius, 1983
18th Century Britiain
Much countryside belong to estates and landed gentry,due to social mobility merchants could buy land and they invested in it
18th century half the land of England was under strict settlement the eldest son was not allowed to sell any portion of it
Advantages of leasehold
could make decisions about large areas of land
could change cultivator easily
allowed consolidation of farms to happen more easily
Mathias 1983
Improve agricultural land=pressure on the peasantry
smaller farms seen as less economic as far as the production of crops was concerned smaller farmers started to decline
common lands lost to marginal people through enclosure, people given plots but these to small to be economic and too expensive to run
half the land in England had been enclosed befor 1750
cottage industries took over smallholdings
In Lincolnshire the rural population increased by 60% between 1563 and 1801
Numbers employed in agriculture went on rising during the first half of the nineteenth century
enclosure bought new land as crops for the first time
agricultural innovations increased the value per output
Mathius, 1983
Thresing machines teduced the need for winter employment
other industries started expaning more quickly after 1750
Extra population started to work in industry-local migration
Rise in population in the 1740's
increased demand for Industrialk output in England 1720-50-advances in agricultural productivity and consequent fall in food prices
output increased
expansion of national wealth
Agriculture provided raw materials for industry, the labour force sometimes a joint labour force with the agricultural labour force
Capital and credit between industry and the land were linked, agriculture was the largest sector of the economy - 1/3 of the population employed in agriculture
Mathius, 1983
Capital came from rents- allowed for investment paricuarly in transport
need rising population to creata and industrailised labour force so there is still labour in agricultural areas to feed the workers
unless food production rises in step with those consuming then food prices rise
developing countries in 1983-more strain on the debt side of the balance, difficult to buy exports so concentrate on primary goods
18th century england textiles started having an export demand after 1780
18th Century no crisis of food prices occured
Mathius 1983
British Agriculture Improved because of:
New land being bought nto cultivation
Previously cultivated land farmed more intensively
new labour
improvements in technique
much land still unculitvated
Enclosure wasquantitively the most important single movement affecting land use because it made all other innovations possible"
Cambridgeshire and Lincolnshire fens drained in the 1630's, drainers bought new crops with them from Holland,Oats, flax and hemp
Mathius, 1983
Innovations
New Crops, turnops, swedes and magrels
Drainage skills, artificial grasses, clover,lucrenes ans sainfoin to fix nitrogen in the soil,learned more about fertilisation from dung
Turnips-increased sheep-increased Barley-contributied to the growing breweries in London
Jethro Tull (1674-1741)- advocated light iron instruments, harrows rakes etc, drilled in seed by implement rather than scattering
Used Horses instead of Oxen in the fields-Nolfolk Plough
improved rotations, crops, seed-yields and strains in plants
improved Breeds of Sheep Robert Bakewell 1725-95- who created three breeds of sheep
agrarian revolution was slow-17th and 18th centuries and eastern and centralk revolution
British agric revolution
17th Century UK Low countiries and Dutch all low countries
SET, Science Entrepeneurship and Technology
Old way of Crop Rotation
1 field wheat
2nd field Oats
3rd Field Fallow
1/3 fields is unused
New System of Crop Rotation
New system of Crop Rotation- 4 Field
Wheat, Oats, Clover, Turnips
Clover and Turnips replenish the soil all the fields being used, can feed more people
Selective Breeding
Started Breeding animals with similar chracteristics-Belgian Blue Cow
Agricultural Innovation the Farmer as the Entrepre
Traditional Agriculture
The Common Pasture- Land that doesn't belong to anyone
Enclosure
- Ownership, fancing off fields, Hurt poor farmers lost traditional grazing rights
- but more food, more effiecient more market orientated
- Those negatively affected-Workhouses the Poor Law
- Could argue that economic progress hurts groups of people in the short term but in the long run, it produces a greater amount of material prosperity for future generations
Innovation
Farmers as inventors
Seed getting wasted
Jethrop Tull's Seed Drill, puts seed where it's supposed to go all the Seeds are supposed to go
US
Jefferson-Moldboard Plow
Washington-16 side barn
Threshing Wheat
Before the Revolution
Threshed wheat manually- portable threshing machine
Crop yields 1600 10 bushels per acre 18th century agricultural production has doubled
Population Explosion
Population Explosion in Europe in 18th Century
Devine (2000) The Scottish Nation
Scotland
18th Century writers in favour of the new developments
Propoganda- trying to demonstrate the weaknesses of the old system, justifying the removal of traditional society
radical transformation of the lowlands in the 18th Century-prospective of the market orientated society
recently scholars have been lookingat wider sources of information
1750-vast majority of Scottish people lived of the land
2/3 wages spent on food,alot of raw materials produced for contemporary society
mostly a tenant landlord relationship
Devine (2000) The Scottish Nation
The tenant landlord relationship
1/ by 1700 was an economic relationship, tenants heir preferred as successor, propoetiers may allow default on rent but not the cultural expectations of the highlands, ehre chiefs were protectors of the people
2/ early eighteenth century-tenants land was defined by a lease, about 9 years, tenancies could be made into a larger unit by refusing tenancies. Little peasant propietership
3/ tenants could either be fined or disciplined for ignoring landowners
additional rental services paid in labour, ******* to work at harvest time, had to have corn ground at the landlords mill
below tenant of the land clusters of people
Devine (2000) The Scottish Nation
New tanancies developed later in the 18th century larger areas
larger area used for grazing,abandoned villages in Eskdale, depopulation, tenants for stock rearing
The Levellers Revolt in 1724-conflict between traditional values and market pressures
Cottars held a few acres from tenants in exhange for labour, which was used at busy times of year
people very dependent on the land- people often paid with land contrast with endland three-part social structure where, in most regions te classical three-part social structure of landowners, farmers and landlass servants was already in place by 1700
Infield-Outfield System in Scotland- The Infield most intensive care outfield poorer quality-oats could be grown on them, allowed to revert to pasture after a few years, also multipurpose areas, rig and furrow
Devine (2000) The Scottish Nation
Improvers condemned all these practices as ineeficient, wasteful and incapable of reform
True that crop yields were comparivaly low
Doubtful that traditional methods could have satisfied the huge increase in demand
Pre industrail age the old system met the needs of Scottish Society
fed the population
surpless for export
only two harvest failures and shortages between 1600 and 1700
18th century=stubbon stagnation in grain prices and a challenge of selling in depressed markets
Rig and furrow provided some drainage
small pathches of land important to families
Devine (2000) The Scottish Nation
Touns made sense because it made sense to share labour when there was little technology
A community approach was helpful in outfields- worked with planning and controls, controlled number of animals each person had
was Flexible, in fields adoped the four crop rotation, use of liming adopted
changes in the lowlands by 1750
increasing dominance of the single tenant
greater impact of the market-sheep and cattle
Rnage of cropping refinements
These were alternations within the old system
Scottish Countryside in the 1740' with open fields, long rigs and huddled townships had not change much since medieval times yet within a few decades it would be changed forever
Devine (2000) The Scottish Nation
1760-1830-big change in Scottish Countryside
1830-fields, hedges , new systems of crop rotation, higher yeild *2 or *3 times greater than in the past
1750's market forces started to grow- towns and cities started to grow, building of roads
muliple tenancies eliminated
cottar system attacked,land was now owned by a tiny percentage of the population
1830's Scottish Farming-model of effieciency
Commoties 'common Land' was divided amoungst landlords, leases becoming more rigorous landlords had more rights
Enclosure-dissollution of the infield outfield system 1790's most enclosed
increased productivity meant more people moved into jobs where they bought rather than produced their own food /rising yeilds meant that food prices did not rise to high
Devine 2000
more intensive application of traditional agriculture-fallowing and the application of lime,rapid diffision of sown grasses and turnips, sown grasses allowed more animals to be kept
Sown grasseses were especially useful for Scotland- growing system in Animal husbandary
Two horse plough introduced-lighterand easier to use
geographical areas became more significant for specific types of agriculture- Aryshire, Renfrewshire, and western Lanarkshire became more significant for Dairy
1770's equilibrium crumbled rapidly with the growth of national population in the towns and cities between 1755-1820, growth by two thirds more people buying food
Rural Transport Revolution- Turnpike Trusts-savings on human and animal labour, construction of the Forth and Clyde Canal-supplied Glasgow
growth of small towns and villages around industires
Devine 2000
Scottish Landlords protected by entail protected land from forced sale
Acts passed allowing landlords to divide the land as they liked
costs of land ownership rising steeply by the end off the eighteenth century-more rchitectaral display of wealth classical style houses and policies built- made rent higher
intellectualis- land managers had often been to uni and had been exposed to enlightenment ideas
imperalism- growing rich from the colonies
cottars continued to be removed- seen as some as an influence of wider social developments - meant that people became more dependent on large tenancies, higher levels of labour efficiency demanded anfd higher rents, new ploughing system required ploughmen as pemanent servants, part time services
higher wages were needed by new employers to attract workers may have diffused cottar unrest
Smedthurst, 1986
Agricultural Development and Tenancy Disputes in Japan 1870-1940
- 1878-1880- productivity per worker *3 an average rate of 2% a year
- Japan's farmproduction was as greater or greater than that in western countries in comparable stages of industrail devlopment
- some calculations that rice fields expanded by at least one-quater of a percent between 1645-1873
- Cash crops provided secondary job opportunities
- 1870-1940 should not be viewed as a new trend but as the broadening and deepening with systematic government encouragement
- Tokugawa farming to modern agriculture-not only one of expanding production
- in the modern era many of its farmers already cultivated crops, paid taxes, set rents at fixed amounts
- Cultivators could sell the entire surpless had an interest in technological innovation and had recieved a good education
- a recorded ambition for social mobility
Smedthurst, 1986
1868-Change from several feudal domains to a single government
The Meiji reforms and agricultural devlopment
- abolished seigneurial ruole and the warrior class's legal prominance
- Military conscription, compulsary education, systematic local and national governance, a legal framework for modern forms of economic organisation , banking and financial institutions, a tax system-technical and entrepreneurial activities encouraged and economic growth stimulated
- 1870's on farmers had the same rights as samuri, farmers could own and alienate land
- Tokugawa era-sub ruling class land ownership evolved -Meiji era changed this
- New government recognised new peasants owners as the rightful owner, giving them the authority to sell and buy land
- owner now had greater stake in expanding yields and income
- Tax Meiji regieme-standardized tax in agriculural land at 4% when previously it had been at arbitary rates
Smedthurst, 1986
- historical literature on modern Japan is that Meiji leaders industrtailized and modernized their nations at the expense of the peasantry
- The new land tax seen as a harsh burden for the Japanese to bear- and proseprity scarificed to pay for the costs of modern weapons
- evidence is that tax burrden was not as high as it was in the pre 1868 era, even in the mid 1870's had lowered agricultural taxes by 5-6% at the very least, 1937 taxes were 7.1%
- Within a few years of the establishment of the tax system farmers paid less not more, of their share in taxes
- Tax in money no longer in produce - intrusion of commerce into the countryside
- also helped by the establishment of interegional crop prices
- Set up organisations to help farmers improve their tillage practices
- Research stations into seed strains
- Entreupenuers sold large amounts of traditional agriculture
- Before the end of the Meiji era virtually all rice growers used new seed varieties
- improved tools-plows and rotary weeder
- developed fertilisers
Smedthurst, 1986
- Most Dramatic change was the increased use of fertilizer
- between 1890's and 1930's rice production grew by 67%, seed productivity by 7% and fertilizer use by 100%
- prices of fertilizer were falling steadily
- output grew apples grew by 1,659 percent
- ferilizer=less labour= agricultural workers decreased by 12.2%
- diversification in the 1920's
- Japan small capital inputs on all farms lead to increased productivity
- better methods of planting, new seeds, better ferilizer, insecticided, weed killers, gasoline-powered threshers and electric pumps
- 48% increase in tenancy
- sharp increase in area of land under cultivation-reclamation, bankruptcy, transformations from servants to owner farmers
- before World War II modern Japan - the improvement per capita in caloric consumption 600 extra calories consumed between 1892-1920
- Army recruirs 2.3 percent taller in the 1930's than in the 1880's
- average height and weight increased
Smedthurst, 1986
- improvements in industry meant that some members of the family could go and work in industry, agricultural families improved their non agricultural income
- girls got textile work
- increased transport, education and healthcare
- evidence of extra spending and income in 1925, cinema, packages, use of transport
- Meiji period increased scholl attandence increased 49% in 1890, 61% in 1895 1903, 93.2%
Mededev, 1987
Soviet Agriculture
- Revolution October 2017
- All land became the property of the state
- detoriation between peasants and the Bolshiviks on collectivisatation
- food confiscated to feed people in the cities
- People's Commissarit for Food Supplies was set up and given dicatorial powers
- banks nationalized, new banknotes, paper currency discredited
- famine in 1918 transport problems
- violent clashes between food requistioning army and peasants for food
- Civil war 1918-1921
- terror against kulaks
- Party Unity declared in 1921
- New Economic Policy Began- taxes, free trade in consumer goods legalized
mevedev 1987
- 1921 recieved food aid from the west
- population decline started in 1917
- Lenin died in 1924
- Primative methods still used in rural areas
- 1922- encouraged consolidation of stips of lkand and separation from communes
- consolidation-people encouraged to aplly for this in the 1920's
- kulaks-wanted to stay in a commune system
- 1927-collectivisation of agriculture plans started
- 1920's till the problem of food shortages in towns
- first 5 year Plan orientated towards heavy industry-rural villages started to experince shortages of essentials
- Industry could not provide peasants with the means of small scale mechanisation
- Stalin's new methods caused The Grain Crisis
mevedev 1987
The Grain Crisis
- increased the procurement pirces of technical crops and other raw materials required for light industry 1927 Peasants had more cash
- 1926-97 Harvest was 20% higher than the previous year
- stalin made hoarding Grain a criminal offense- army used to seize grain
- 1928 cancelled this and tried economic measures- increased supply of consumer goods and raised prices for grain but it didn't work
- The Procurement pattern in the 1920's
- Tax was not paid in full
- Transport and storage poor
- Blackmarket buying grain at a higher price
Chirwa et al 2006
Future Scenarios for Agriculture in Malawi
- Malawi one of the poorest countries in the world GDP $190
- Agriculture 39% of GDP
- Food insecurity exacerbated by widely changeable food prices
- 2004-45% of rural households indicated that their economic well-being had deteriorated over the year
- Main products include maize, tobacco, casava, groundnuts etc
- Traditional exports are Tea, sugar, tobacco and coffee
- Moved to private sector for marketing food efficiency has been questionned
- Few mineral resources
- land and labour are the critical assets
Evolution of Agricultural Sector in the UK
House of Commons, January 2016
- First proper agricultultural census of Great Britain taken in 1865
- Indication of some areas agriculture has changed in response to events over the last 100 years, two world wars, depression of the 1930s,post-war boom and entry into the European Community
- 1990's fall in prices and farm incomes
- BSE and the outbreak of foot and mouth disease
Evolution of Agriculture in the UK
- House of Commons January 2016
- Arable land falling before the second world war and then during the second world war increased by 50% during the second world war
- Since then arable land has been more variable
- collapse of cereal prices in the late 19th century caused area under wheat and barley to decline
- Gradual increase after the 1960's- wheat became more productive and was produced a bit more
- the decline in the number of orchards- seens as an indication of the industrailisatiopn of agriculture
- orchards increased between 1875-1950
- orchards started declining during the second world war
- since 1951 very rapid decline in orchards
- Livestock
- decline in livestock 1875 to 1974
- Since 1974 amount of cattle has fallen by 32%
- Recent falls associated with foot and mouth disease and BSE
- Much of the the underlying decline since the 1980's has been in the dairy herd =milk restictions
Evolution of UK Agriculture
Sheep
- before 1970's falls during and after both wars
- 1980 CAP for sheep meat was introduced and profitabililty improved
- numbers increased by 50% to the highest level in 1992
- sheep numbers fell 13% in 2001, still have not recovered
- Pigs volatility in numbers- reflects the ability to respond to prices more quickly and the dominance of meat value extracted from pigs
- numbers of pigs reduced during the second world war- reductions in pigs food supplies
- numbers started to increase by the end of the 1940's
- 1990's- falling pricee, with outbreaks of swine fever and foot and mouth, decline approaching 40% between 1998 and 2003
- Fallen further apart from and increase in 2013
- pig farmin underwent major specialization and intensification from the 1970's onwards
- poltry, wartime falls, rapid postwar expansion
Evolution of UK Agriculture
Uk House of Commons 2016
- Hired Agricultural workers declined between 1925-2005, interrupted only by the second world war- womens land armyand POW's
- fastest period of decline between the end of the 1940's and 1960's- has slowly declined since then
- number of farmers has fallen
Productivity
- Measures how well the industry the measures the resources
- Ratio of the volume of outputs and the volume of inputs
- Productivity plays a vital part in agriculture's competitiveness and has cleatr impacts on farm incomes
- General increase 1950's-1980's- due a broadly similar level of inputs
- between 1996 and 2006 productivity increased driven by a fall in inputs, so therfore true procutivity is not relative to other countries.
Effects of higher productivity
- Improved competitiveness and trade performance: Productivity growth and lower unit costs are key determinants of the competitiveness of firms in global markets.
- Higher profits: Efficiency gains are a source of larger profits for companies which might be re-invested to support the long term growth of the business.
- Higher wages: Businesses can afford higher wages when their workers are more efficient
Productivity
- Economic growth: If an economy can raise the rate of growth of productivity then the trend growth of national output can pick up.
- Productivity improvements mean that labour can be released from one industry and be made available for another – for example, rising efficiency in farming will increase production yields and provide more food either to export or to supply a growing urban population.
- If the size of the economy is bigger, higher wages will boost consumption, generate more tax revenue to pay for public goods and perhaps give freedom for tax cuts on people and businesses.
Productivity in Agriculture
Up until the mid 1990's little change in inputs and hence little change in prodctivity
- Between 1996 and 2006 productivity increased by 19% and this was driven by a fall of just over 18% in inputs
- Labour hs fallen since the mid 1990's, reductions in fertilisers and energy
Farm Incomes
- Farming Income increased rapidly to 1943
- Remained pretty much stable up until the early 1970's
- Rose sharpley in 1973 as a result of the UK entry into the European Community
- much of the variation is due to prices and exchange rates
- The Pound streghtened in the 1980's together with low commodity prices and BSE caused an even more rapid decline in aggragate income
Productivity in Agriculture
Up until the mid 1990's little change in inputs and hence little change in prodctivity
- Between 1996 and 2006 productivity increased by 19% and this was driven by a fall of just over 18% in inputs
- Labour hs fallen since the mid 1990's, reductions in fertilisers and energy
Farm Incomes
- Farming Income increased rapidly to 1943
- Remained pretty much stable up until the early 1970's
- Rose sharpley in 1973 as a result of the UK entry into the European Community
- much of the variation is due to prices and exchange rates
- The Pound streghtened in the 1980's together with low commodity prices and BSE caused an even more rapid decline in aggragate income
Department for Environment Food and Rural Affairs
- UK is 76% self-suffieicient
- food and drink £26.9 billion to the economy in 2014
- Exports 18billion worth of food and drink in 2015
- top products are whisky,salmon cheese wine and lamb
- 73 protected food and drink labels
- Minteles latest 2016 survey 56% of shoppers say they buy British food whenever they can
Agriculture in the UK
Bailey, Davidova, Hotopp, National Institute of Economic and Social Research
Agriculture in the UK
Agriculture makes up 0.7% of GDP and employs 1.2% of the UK labour force.
It is the main supplier to the food and drinks industry which makes up 20% of the UK
manufacturing sector.
20% of agricultural labour force are immigrants, many who are seasonal workers.
Only 3% of farmers are under the age of 35 and 30% are 65 or older.
Many farmers depend on subsidies to ensure they can continue farming. For some up to
50% of all the money they receive is in subsidies, with small farmers particularly vulnerable.
Farmers manage 70% of the UK land area and help to maintain landscapes of cultural
heritage.
They also contribute 10% to UK Green House gas emissions and some farming practices
have significant negative impact on aquatic and other important ecosystems.
Agriculture has impacts beyond the farm gate and effect non-farm rural employment
Bailey, Davidova, Hotopp
- Looking narrowly Agriculture is a small sector
- Long term trend is towwards decline
- BUT
- 70% of UK land area is managed by farmers
- Services-climate change, food security, drinking water, flood production
- EU Measures the busisness size for all member states
- In Ireland, Wales and Scotland-70% of the land is designated as less favoured areas (LFA)
- Different reliance on subsidies,lowest in England at 52% and highest in Wales at 142%
- Farm incomes fell 29% between 2014 and 2015
- Prices od agricultural products hit the headlines frequently
- 2015 crop prices fell by 6%, livestock by 10% and milk by 22%, reduction in the pound in the years up to 2015=reduction in revenues for farmers selling internationally traded products
- overall the workforce is small less than 2% od the UK labour force, aging population of farmers, number of EU nationals working in UK agriculture has increased
Bailey, Davidova, Hotopp
International Trade
- Uk produces about 60% of the calories it consumes
- International trade is important and price spikes can effect UK consumers
- Deficit in agricultural and trade products has been widening for the past ten years
- Most trade is with other members of the EU
Environment
- Agriculture = 10% Green House Gases in the UK
- 60% of nitrates and 50% of phosoprus comes from Agricultural pollution
Policy Support
CAP represents 73% of total farms incomes in the UK-environmental goods and ecosystem services
Estimates that fewer than 50% of farms cover their inputs from the market alone
Brexit
Rizov, Davidova, Bailey,
2017
hey analyse the relationship between regional CAP receipts and employment in non-farm
small and medium-sized enterprises (SMEs), by considering both the direct and indirect effects of
farmers’ purchasing power. The results show that removing the CAP, and not replacing it with a
national policy, would result in 1.6 per cent fall in employment in non-farm SMEs in the UK. To put
this into context, this would represent a loss of about 250,000 jobs and a decrease in annual
employment growth of about 0.2 percentage point. Since the largest number of jobs lost (200,000)
are concentrated in rural areas, the negative impact on the rural job market might be very
significant
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