It showed although 70 per cent of producers had maintained or improved their competitiveness, their optimism had been significantly eroded.

There is a similar picture from the processing sector, however, half anticipated increasing investment over the next 12 months which is at odds with producers who said they were investing 75 per cent less.

There is also a contrast shown where processors are looking to invest to increase efficiency when producers are mainly having to spend money to cope with changing environmental rules and repairing buildings and facilities.

The question about factors limiting output has seen a major shift with producers citing raw material costs and finance whereas last year it was simply the physical capacity of buildings.

BPEX Strategy Co-ordinator Andrew Knowles said: "While we have seen some price rises in recent weeks, confidence among producers remains extremely fragile.

"The survey is still a valid and valuable snapshot of the British industry and the ability to compare it with the previous year makes it even more important.

"It was interesting to note that vets and members of the allied industry were looking to increase capacity and improve competitiveness.

"This is something they choose to do which shows they are looking at the future with renewed confidence."

Further Reading

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