Overall the agricultural sector has been contracting, with a reduction in the volume of production of nearly –10% and in the area farmed by –3% over the period 1990-92 to 2002-04. As a consequence the share of primary agriculture was around 2% of GDP and 2.5% of employment in 2003 [1] (Figure 3.19.1). However, within this overall decrease there has been an expansion in the horticultural sector, which now contributes around 40% of agricultural gross value added [1]. Agriculture makes intensive use of inputs resulting in high crop and livestock yields in comparison to most other OECD countries [1]. Livestock densities per hectare are among the highest in the OECD [2]. Purchased farm input use has in general declined more rapidly than agricultural production, suggesting that production intensity is diminishing and economic efficiency increasing over the period 1990-92 to 2002-04 (Figure 3.19.2). For example, the volume of inorganic fertiliser use fell by –36% for phosphorus, and –27% for nitrogen, and pesticides fell by over –50%. In contrast, direct on-farm energy consumption rose by 5%, largely reflecting the growth in the horticultural sector.