January 3, 2008

UK grain and livestock farm failures up by 27 percent in 2007

More than 70 farmers and agriculture businesses closed in the UK last year after disease outbreaks and poor harvests caused by bad weather.

Official figures indicate that almost 27 percent more agricultural concerns failed last year, compared with 2006.

The credit squeeze hit vast sectors including agriculture, according to analysts Experian.

Tony Pullen, the head of business information at Experian, said given the widespread speculation on the negative impact of the credit crunch on businesses, figures are surprising.

The credit crunch in the UK, which meant more stringent lending terms, higher borrowing costs and general concern about the economy should prompt more vigilance among business managers and owners with regards to cash flow, risk exposure and customers they choose to deal with, Pullen elaborated.