Accredited official statistics

Chapter 9: Intermediate consumption

Published 10 July 2025

In this summary, all values are provided in current prices which is considered the most intuitive approach for comparisons over a short time period. It should be noted that these values have not been adjusted for inflation. For the current prices dataset please see Chapter 4: Accounts.

Summary

In 2024:

• The total cost of intermediate consumption was £20.9 billion, a decrease of £1,214 million (-5.5%) from 2023.

• The value of animal feed decreased by £502 million (-6.6%) from 2023 to £7,133 million.

• The value of energy decreased by £212 million (-11%) from 2023 to £1,746 million.

• The total value of fertilisers was £1,725 million, a decrease of £617 million (-26%) from 2023.

Introduction

Chapter 4 provides more detailed information on input costs and gives a full breakdown of intermediate consumption.

Figure 9.2 presents the annual price of European brent crude oil in current prices. Figures 9.3 and 9.4 present the value of energy and fertilisers respectively. These are presented in real terms, adjusted for inflation, which provides more meaningful comparisons over longer time periods. Comparisons over more recent years, as presented in Chapter 4, are presented at current prices, not adjusted for inflation, which is considered the most intuitive for comparisons over shorter time periods.

Inputs

Figure 9.1 Intermediate consumption (at current prices), 2019 to 2024 (£ billion)

Enquiries: farmaccounts@defra.gov.uk

Year	Intermediate Consumption (£ billion)
2019	17.2
2020	16.9
2021	18.5
2022	21.9
2023	22.2
2024	20.9

Download the full Intermediate consumption dataset

Figure 9.1 shows the value of intermediate consumption from 2019 to 2024. Since 2019, the average value of intermediate consumption is £19.6 billion, with the lowest value of £16.9 billion occurring in 2020 and the highest value of £22.2 billion occurring in 2023. The value for intermediate consumption fell by £1.2 billion (-5.5%) from 2023.

Animal Feed

Table 9.1 Animal feed purchases, 2022 to 2024 (thousand tonnes unless stated otherwise)

Enquiries: allan.howsam@defra.gov.uk

Type	2022	2023	2024
Compounds:
Cattle	4,991	4,977	5,260
Calves	260	263	278
Pigs	2,263	2,061	2,064
Poultry	4,826	4,667	4,743
Sheep	861	783	871
Total compounds plus imports less exports	13,262	12,780	13,347
Straight concentrates	6,383	6,367	6,800
Non-concentrates	525	525	525
Inter/intra farm transfer	9,227	10,457	9,935
Total animal feed	29,397	30,129	30,606
Total value of animal feed (£ million)	8,219	7,635	7,133

Notes:

1. Compounds poultry includes poultry feed produced by ‘retail’ compounders but excludes production from integrated poultry units which are included within the straight concentrates data.

2. ‘Maize for stockfeed’ is included within the ‘inter/intra farm transfer’ category.

3. See Chapter 4: Accounts for a breakdown of the value of animal feed into compounds and straights.

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The cost of animal feed is the largest item of expenditure recorded in the production and income account. The amount of feed purchased remained broadly level from 1993 to 2012 (around 25 million tonnes) before rising steadily since then to reach a peak of 30.9 million tonnes in 2019 before falling to 29.4 million tonnes in 2022. 2024 saw an increase of 1.6% compared to 2023, to 30.6 million tonnes, due to an increase in purchased compound and straight feed offsetting a decrease in inter-intra farm sales. Despite the overall increase in the amount purchased, the value of animal feed used within the agricultural industry has closely followed trends in commodity prices, shaped by exchange rates and world prices. The total value of all animal feed decreased by 6.6% between 2023 and 2024 to £7.1 million.

Total compound feed production increased by 4.4% between 2023 and 2024, with increases in sheep (+11%), calves (+5.8%), cattle (+5.7%) and poultry feed (+1.6%). Compound feed for pigs showed little variation from 2023 (+0.2%). The pig and poultry sectors have encountered problems over the last few years due to a combination of high feed and energy costs, butchery capacity and disease risks but cheaper feed costs in 2024 have provided a measure of support. The cattle and sheep sectors have benefited from higher beef and lamb prices plus a stronger dairy sector – higher milk prices have encouraged more milk production and hence increased feed.

The year 2024 saw the price of commodities fall for the second successive year after the summer 2022 peak. Markets have adjusted to the ongoing Russia / Ukraine conflict following initial disruption to supply chains.

Defra June 2024 Survey results show the total number of poultry decreased by 1.2% to 176.1 million in 2024. Broiler numbers decreased by 3.5% to 112.4 million whilst the breeding and laying flock saw an increase of 1.5% to 54.6 million. The total number of cattle and calves in the UK decreased by 1.5% to 9.4 million in June 2024. The breeding herd saw a decrease of 1.9% and now stands at 3.2 million. The total number of sheep and lambs decreased by 2.5% to 31.0 million. The female breeding flock fell by 3.6% to 14.9 million and lambs decreased by 1.5% to 15.2 million. The total number of pigs in the UK remained relatively stable at 4.7 million animals. Breeding pig numbers fell by 1.7% to 421 thousand animals, while fattening pigs rose by 0.9%.

Besides compound feed usage there was an increase of 6.8% in purchased straight concentrates and a 5.0% decrease in inter/intra farm sales.

Oil Prices

Figure 9.2 Annual Europe Brent Spot Price, 2000 to 2024 ($ per barrel)

Enquiries: farmaccounts@defra.gov.uk

Text description for Figure 9.2: Figure 9.2 is a line chart showing the European Brent Spot Price from 2000 to 2024. Values are presented as $ per barrel at current prices.

Download the full Intermediate consumption dataset

Some inputs, such as fuel, electricity and fertilisers, are closely linked to oil price. Consequently, oil price plays a role in the increase or decrease of the costs for running machinery and for heating, lighting, drying crops and the cost of fertiliser purchases.

Figure 9.2 shows the current terms trends in annual Europe Brent crude oil prices since 2000. Oil prices rose strongly between 2002 and 2008 but fell sharply in 2009 as a global financial crisis hit. Between 2011 and 2014, oil prices were high but relatively stable due to a weak global economy and tension in the Middle East, reaching a peak of $112 per barrel in 2012.

In 2015, strong global production exceeded demand, causing prices to fall rapidly, dropping below $45 per barrel by 2016. Prices rose steadily through 2017 and 2018, reaching $71 a barrel, amid fears of US sanctions and global shortages.

In 2020, Covid-19 related restrictions resulted in a rapid contraction in global demand for oil, particularly for travel. This caused the price to fall below $42 per barrel for the first time since 2004. The price rebounded to $71 per barrel in 2021, as the easing of Covid-19 restrictions globally saw the demand for oil outpace supply.

In 2022, oil prices rose to $101 per barrel as a result of disruptions of imports to Europe following Russia’s invasion of Ukraine. In 2023 prices fell to $83 per barrel, driven by global markets reacting to new trade dynamics and lower than expected demand, which together offset impacts from OPEC+ crude oil supply curbs.

In 2024, the OPEC+ supply curbs were extended providing some support to prices, which remained relatively stable throughout the year. There was a 2.4% decrease from 2023 to $81 per barrel, with limited trading of crude oil due to high supply outside of OPEC+ countries and subdued demand.

For more information on crude oil prices see this article: EIA. Further details on the Organization of the Petroleum Exporting Countries plus (OPEC+) can be found in this article: EIA.

Energy

Figure 9.3 Energy (in real terms), 2000 to 2024 (£ million)

Enquiries: farmaccounts@defra.gov.uk

Text description for Figure 9.3: Figure 9.3 is a line chart showing the value of energy in real terms from 2000 to 2024. Values are presented in millions.

Download the full Intermediate consumption dataset

Figure 9.3 shows the value of energy usage for agriculture in real terms. The value of energy includes costs for electricity and fuels for heating, and motor and machinery fuels. Over the long term the cost of energy has followed a similar pattern to that of the crude oil price (see Figure 9.2). Energy costs generally increased during the 2000s, reaching a peak in 2012 before falling again. From 2015-2021 energy costs fluctuated between £1,500 million and £1,700 million, before rising sharply to £2,154 million in 2022. In 2023 the total cost of energy decreased to £2,017 million, driven by a fall in the value of motor and machinery fuels.

In 2024 energy costs fell by a further 11% at current prices to £1,746 million, driven by falls in the values of both motor and machinery fuels (-16%) and electricity and fuels for heating (-2.5%). The cost of motor and machinery fuels in 2024 fell largely as a result of the reduction in oil price from 2023, which was only partially offset by a 6.2% increase in volumes of fuels used due to larger planting areas to compensate for a poor harvest. The value of electricity and fuels for heating decreased due to a fall in price, as well as lower volumes needed for drying following smaller crop yields.

For the full current prices and real terms dataset see Chapter 4: Accounts

Fertilisers

Figure 9.4 Fertilisers (in real terms), 2000 to 2024 (£ million)

Enquiries: farmaccounts@defra.gov.uk

Notes:

1. There has been a substantial revision to the value of fertiliser in 2023. See the revisions section in Chapter 4 for details.

Text description for Figure 9.4: Figure 9.4 is a line chart showing the value of fertilisers in real terms from 2000 to 2024. Values are presented in millions.

Download the full Intermediate consumption dataset

Natural gas is used in the process of manufacturing nitrogen fertilisers and its price is closely linked to the price of oil. Consequently, if the price of oil rises so does the cost of producing fertiliser.

Figure 9.4 shows fertiliser costs since 2000 in real terms. Between 2000 and 2007 fertiliser costs were largely stable, before increasing sharply in 2008 and remaining high until peaking at £2,221 million in 2011. Between 2012 and 2019 fertiliser costs steadily declined, with a sharp drop in 2020, resulting from reductions in both prices and the volume of fertilisers used. Fertiliser costs began to increase in 2021 before a sharp rise in 2022 as a result of steep rises in oil prices which drove up the cost of fertiliser production. Prices remained high into the following year with 2023 seeing the highest expenditure on fertilisers, in real terms, since 1987.

In 2024, the value of fertilisers decreased by £617 million (-26%) from 2023, in current prices to £1,725 million. This was driven by a decrease in the cost of gas, a key input for fertiliser production, in comparison to the high prices seen in 2022 and 2023. The decrease in price led to an increase in fertiliser applications per unit area; however this was offset by reductions in key crop areas, including an 11% decrease in wheat area and a 15% decrease in winter barley area. It should be noted that there was a large revision to the estimated value of fertilisers in 2023. This was a result of earlier estimates, made on the basis of fertiliser application rates and crop areas, being updated with the latest fertiliser expenditure data from the Farm Business Survey. See the revision section in Chapter 4: Accounts for details.

Other Input Costs

The cost of seeds in 2024 was £975 million, an increase of £24 million (2.6%) from 2023, in current prices. Seed usage is driven by a combination of crop area, time of drilling, and drilling conditions. Wet weather conditions in 2023 caused a reduction in the winter crop areas for the 2024 harvest, as a result of failed plantings and waterlogged seed beds. To compensate for this, in 2024 there was an increase in spring crop areas and winter cereal areas planted in autumn.

The cost of plant protection products in 2024 was £969 million, a decrease of £106 million (-9.8%) from 2023, in current prices. This decrease was largely driven by a reduction in the volume applied on cereal farms due to reduced cropping areas for winter wheat, winter barley, and oilseed rape.

Revisions

Details of the 2023 fertiliser revision can be found in Chapter 4: Accounts