Slide 6

The nation’s industries can be divided into three sectors:

· Agriculture, hunting, forestry, and fishing

· Production industries

¾ Electricity, gas and water supply

¾ Manufacturing

¾ Mining and quarrying

· Service industries

¾ Creative industries

¾ Education, health and social work

¾ Financial and business services

¾ Hotels and restaurants

¾ Tourism

¾ Transport

¾ Wholesale and retail trade

¾ Construction

Slide 7

In total agriculture accounts for 1.4% of UK’s GDP (2010), industries - 21.6% and services - 77%.

Slide 8

Agriculture in the United Kingdom uses around 70% of the country's land area and contributes about 0.7% of its gross value added. The UK produces less than 60% of the food it eats. Despite skilled farmers, high technology, fertile soil and subsidies, which primarily come from the European Union (EU), farm earnings are relatively low, mainly due to low prices at the farm gate. The high cost of entry into farming presents a significant barrier. With each generation, fewer young people can afford the rising capital cost of entry into farming and more are discouraged by low earnings. The average age of the British farm holder is now 59.

Slide 9

However recently there have been moves towards biofuels and organic farming in an attempt to sustain profits.A biofuel is a type of fuel whose energy is derived from conversion of inorganic carbon (carbon dioxide) to organic compounds by living organisms.

Slide 10

Organic farming is a form of agriculture that relies on techniques such as crop rotation, compost and biological pest control. Organic farming uses fertilizers and pesticides but excludes or strictly limits the use of manufactured (synthetic) fertilizers, pesticides, plant growth regulators such as hormones, antibiotics, food additives, genetically modified organisms and nanomaterials.

Slide 11

The total area of agricultural holdings is about 17.1 million hectares, of which are arable.

British farming is intensive and highly mechanized, but the country is so heavily populated that it cannot supply its own food needs. In 2010, it exported £14 billion worth of food, feed and drink, and imported £32.5 billion. The vast majority of imports and exports are with other Western European countries.

Farming is subsidized. The subsidies to farmers make £3.19 billion paid in 2010. These mostly originate from the EU. The UK receives the fifth largest agricultural subsidy in the EU.

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