United Kingdom Agribusiness Q3 2018
We continue to believe that Brexit will be a net negative for the UK agriculture industry because of short-termuncertainty, followed by lower revenues and increased costs owing to less favourable subsidies, trade and labour conditions. Whileour forecasts for the UK agribusiness sector across both production and consumption remain unchanged in this quarterly update,we continue to highlight that our forecasts remain susceptible to change as the impact of Brexit becomes clearer and the deadlinefor leaving the EU draws closer. Amid all the uncertainty, we expect grains to be the most resilient sector, a view supported by anupwards revision of our forecasts for wheat production and consumption across our forecast period in our last quarterlyupdate. Despite this, we believe that wheat will continue to suffer from lower subsidies and the bottoming out of prices due to itslow production costs and greater ease of diversifying trade relationships. Sugar will be a clear underperformer as the UK will struggleto fully take advantage of the EU quota removal in 2017 while failing to offset this loss by sourcing alternative trade partners. Thelivestock and dairy sectors will be able to supply a greater share of domestic demand while benefiting from higher prices, althoughthe costs of production will also be higher going forward.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook