Food and Agriculture still dominant force in the local economy

The food and agriculture sectors in two East Anglian counties remain a dominant force in the local economy according to recent reports published by accountants and business advisers Grant Thornton.

The Norfolk and Suffolk Ltd reports are annual publications produced by Grant Thornton which look at the results of the top 100 companies in a composite business report, giving a barometer on the local economy including profiles on specific sectors.

In Norfolk food and agriculture continues to be the largest sector, in line with the county's historic tradition of food production and processing. The sector in 2005 displays a total of 23 per cent of Norfolk Limited's turnover which is six per cent ahead of the other sectors.

While turnover has been pushed up by 11 per cent, this growth has not been matched on operating profit which has actually fallen by 10 per cent.

In Suffolk, the same sector has turned around a three year decline in turnover with an increase this year of seven per cent. However against this growth is a 31 per cent drop in operating profits for the food and agriculture sector in the county.

Gary Markham, agricultural partner at Grant Thornton. commented: "It is particularly tough in agriculture at the current time but we are seeing signs of innovation in terms of co-operation between farmers to make economies of scale and these are proving profitable. It is much harder for the factory led producers who are having to meet very keen global prices to secure a place on the supermarket shelf.

"Cost control combined with fast reactions to changing consumer demands is helping some producers to remain profitable," Mr Markham added.

Anyone requiring a copy of the reports can contact Roxane Marjoram for Suffolk Limited on 01473 221491 and Helen Bibby for Norfolk Limited on 01603 620481.