Economic Accounts for Agriculture

The output of the agriculture industry (OAI) valued at the current basic prices was 102 893,1 mil. CZK in the year 2005. OAI decreased by 1,8 % to 101 085,8 mil. CZK in the year 2006. As the cause of this decrease was fall both the crop output by 2,2 % and the animal output by 2,1 %.

If we compare the agricultural output measured at current constant prices of the year 2000 then OAI decreased by 5,9 % from the year 2005 to 2006, the crop output came down by 10,8 % and the animal output by 0,8 %.

The crop output shared OAI by 48,6 % in the year 2005 (valued at current basic prices). In the year 2006 it shared OAI by 48,4 %, where cereals (40,2 % in the year 2005 and 37,6 % in the year 2006) and industrial crops (27,0 % in the year 2005 and 26,9 % in the year 2006) had a major proportion in the crop output. The share of the potatoes in the crop output was 5,0 % in the year 2005 and 6,0 % in the year 2006. The production of potatoes (in spite of the lower crop) due to substantial increase of the average price was by 16,4 % higher in the year 2006 than in the year 2005. The animal output shared the OAI by 46,4 % in the year 2005 and by 46,2 % in the year 2006. The milk production (44,8 % in the year 2005 and 43,2 % in the year 2006) and breeding of pigs for slaughter (25,9 % in the year 2005 and 25,1 % in the year 2006) represented the most important part of the animal output. The rest of the total OAI is made up by the agricultural work supplied to the other unit, that is the agricultural services output (2,1 %in the year 2005 and 2,3 % in the year 2006) and non-agricultural secondary activities (inseparable); 3,0 % in the year 2005 and 3,1 % in the year 2006.

The intermediate consumption (IC) at market prices shared OAI by 73,5 % in the year 2005 and by 75,7 % in the year 2006. The intermediate consumption of feedingstuffs represented the biggest part of it, which was 39,4 % in the year 2005 and 37,9 % in the year 2006. The IC raised by 1,2 % within the year.

The gross value added at basic prices (GVA) was 27 292,8 mil. CZK in the year 2005. GVA decreased by 10,0 % to 24 549,9 mil. CZK in the year 2006. After deduction of the fixed capital consumption (FCC) we get the net value added at basic prices (NVA). NVA amounted to 14 300,6 mil. CZK in the year 2005 and within a year it decreased by 18,8 % to 11 609,3 mil. CZK in 2006.

The factor income at basic prices was 31 761,8 mil. CZK in the year 2005 and it went up by 0,2 % within a year, therefore it amounted to 31 825,1 mil. CZK in 2006. The compensation of employees was 20 153,2 mil. CZK in the year 2005. There occurred an increase of the compensation of employees in the year 2006 contra the year 2005 by 2,1 % to 20 585,4 mil. CZK.

Income from agricultural activity per full-time labour equivalent (1 AWU), as it is measured by income Indicator A, decreased by 4,3 % in 2006. The deflator (the implicit price index of GDP at market prices) was 107,5 % in the year 2006.
The main reason for this decrease was a fall in the volume of crop production by 8,8 % in the
year 2006 (expressed at prices for the preceding year).
Cereals are the most important product of the Czech agriculture and there was a decrease in the output at basic prices of this crop by 14,9 %, the cereal volume decreased by 16,3 %, but the real price was higher by 1,7 %. There was a fall of volume for potatoes (-32,9 %), but real price increased by 59,9 %. The volume of oilseeds was higher by 4,9 %, real price went up by 6,8 %. For the crop output as a whole in 2006, the real price was lower by 0,4 % than in 2005 and the lower volume produced the overall drop of crop output at basic prices by 9,0 %.
The output at producer prices of cattle went up by 0,2 %, the output at basic prices was noticeably higher by 20,6 %. Pig production is the second most important product of the Czech agriculture. The real price went down by 9,2 % in parallel fall of volume by 2,7 %; consequently the output at producer and basic prices went down (-11,7 %). Output of poultry at producer and basic prices went down by 18,1 % as a result of decrease of real price by 15,2 %
. Milk production has a substantial share in the agriculture of the Czech Republic. The output at basic prices decreased by 12,2 % and the volume in the year 2006 was under the level of the previous year by 0,7 %. Real value of animal output decreased by 9,0 % at basic prices.
The volume of the agricultural industry went down by 9,8 %, the output at basic prices was by 8,6 % lower than in 2005.
The overall value of intermediate consumption costs was lower (-5,9 % real terms) than in the previous year due to a reduction all items, except of energy and veterinary expenses. On the back of the overall developments of output and input, agricultural gross value added at basic prices in the Czech Republic decreased by 16,4 %, in 2006.
During the interannual drop at real value of fixed capital consumption by 7,4 % net value added decreased at a rate of 24,5 %. In spite of the decrease in the other taxes on production (-13,0 % in real terms) and a slight growth in the other subsidies on production (+6,0 %), the decreasing rate of real agricultural factor income, the basis of income Indicator A, was limited to 6,8 %. The volume of agricultural labour input have been reduced in 2006 by 2,6 %.
For the agriculture of the Czech Republic, expenditure on compensation for employees is the most important item. They shared the factor income by 63,5 % in the year 2005 and by 64,6 % in the year 2006. In the year 2006 compensation of employees was by 5,0 % (in real value) lower than in 2005, and net operating surplus showed decrease by 10,0 %. The net entrepreneurial income, expressed by Indicator C, dropped in the year 2006 by 11,9 % in a real value. Indicator B, which measures trends in real net entrepreneurial income in relation to trends in unpaid labour input, fell by 13,1 % in 2006.