Fertiliser and energy drive input costs for farm businesses   

For farmers, fertiliser costs climbed 20% in December from November and were 87% more costly than in December 2020, according to CSO figures

The index of overall input costs of goods and services bought by farmers for the whole year — weighted to account for their contribution to total costs — rose by 9.3%.

Soaring fertiliser and energy prices are pushing up the input costs for farm businesses, new CSO figures confirm.

However, the figures show evidence that some of the costs are being passed on in higher agricultural prices too.   

The figures come as the Irish Farmers Association had protested at a number of supermarkets this week, saying milk is being underpriced by major retailers.     

Energy costs have been hitting energy-needy businesses in recent months, and fertilisers which require a huge amounts of power to manufacture were, as expected, a major casualty.     

Fertiliser prices increase almost 90% in December 2021 compared with December 2020https://t.co/NJ0VFel3KK #CSOIreland #Ireland #Agriculture #Agribusiness #Farming #Prices #AgPrices #Livestock #Cattle #Sheep #Pigs #MilkStatistics #Dairy #Milk #Tillage #Crops #Agronomy pic.twitter.com/R5YdtgecUE

— Central Statistics Office Ireland (@CSOIreland) February 15, 2022

                                 

For farmers, fertiliser costs climbed 20% in December from November and were 87% more costly than in December 2020, according to the CSO figures. 

The rise in agricultural input costs were widespread.

Energy costs

Energy was 34% more costly in December than a year earlier; electricity costs were up 22.4%; seeds were up 11.6%; and overall animal feeds were up by 16% in the same period.              

That meant that the index of overall input costs of goods and services bought by farmers for the whole year — weighted to account for their contribution to total costs — rose by 9.3%. 

On input costs, "the most significant change is in the price of fertilisers where the price index is up 86.9% in the month of December 2021 when compared with the monthly price in December 2020", said CSO statistician Anthony Dawson. 

The CSO said output price index — which measures the prices of agricultural produce — rose 11.5% in 2021. 

It cited an increase of more than 16% in milk prices as "the driving factor". 

The focus turns to consumer prices on Thursday when the CSO publishes January figures. Irish consumer inflation, at 5.5% in December, was already running at its highest for two decades.

The rise in energy costs has sent inflation in Europe and the US soaring. 

Shortages of energy as well as the Ukraine crisis has meant that all types of fuels used to generate power across Europe, including gas and renewables, have been in short supply this winter.                           

Spain on Tuesday confirmed its consumer prices rose 6.1% in January, which was down from the annual 6.5% inflation rate in December. 

Meanwhile, CSO figures for the whole of 2021 point to Brexit and the Northern Ireland Protocol continuing to boost the all-Ireland economy, with north-south trade at record levels.     

The value of goods from the Republic to the North rose by almost €1.3bn last year, while imports were up by a similar amount, by over €1.5bn.

The Republic was bringing in fewer goods from Britain in the first year since the EU and Britain signed the so-called Trade and Cooperation Agreement.      

At €15.4bn, the value of imports from across the Irish Sea was down by almost €2.4bn in the year. 

Exports to Britain last year rose €2.1bn to €14.4bn, which compares with the €17.7bn of goods exported to Germany.   

Overall, exports from the Republic were up 2%, to €165.2bn, in 2021.

The EU accounted for €61.4bn of all Irish exports in the year. By country, the US was the largest destination, at €52.5bn, accounting for under a third of all exports.