Fertiliser experienced largest price increase of farm inputs in 2022

However, the full impact of higher prices was allayed by a reduction of 19% in the volume of fertilisers used on Irish farms this year, the CSO said.
Fertiliser experienced largest price increase of farm inputs in 2022

The price of fertilisers experienced the largest increase of all inputs in 2022, with prices rising by an average of 141%.

However, according to new figures released by the CSO on Thursday, the full impact of higher prices was allayed by a reduction of 19% in the volume of fertilisers used on Irish farms this year. 

As a result, the cost of fertilisers is estimated to have increased by 97% to over €1.1bn.

Overall, intermediate consumption costs are estimated to increase by 25% to €7.6bn in 2022.

It is projected that the cost of feed increased by 31% to over €2.3bn, adding an additional €561m to production costs. Price increases accounted for 28% of this increase.

Expenditure on energy and lubricants is estimated to rise by 42% to €649m due mainly to price increases of 39%.

Agricultural operating surplus is expected to grow by 30% to €4.8bn in 2022, according to the CSO.

Outputs

The value of agricultural output is estimated to increase by 26% to over €12.6bn in 2022.

With almost no change in output volumes and a price increase of 46%, the value of milk production is forecast to rise by over €1.5bn to €4.9bn. 

Milk is expected to generate 39% of the value of agricultural output at basic prices.

The value of almost all livestock will grow in 2022, however, cattle production is expected to experience the largest increase with its value rising by 20% to €3.1bn.

Despite a projected contraction of 2% in output volumes, higher prices should see the value of pig production increase by 10% to €612m.

The volume of sheep production is expected to rise by 9% and when combined with price increases of 3%, it is anticipated that their value will grow by 12% to €405m.

Poultry is the only output where values are expected to fall in 2022. A 4% increase in prices was negated by a 5% reduction in output volumes, resulting in the value of poultry falling by 2% to €185m.

Despite the expectation that the volume of most crops would fall in 2022, crop values will grow by 14% to €2.4bn. 

While volumes are forecast to contract by 4%, cereal values are estimated to rise by 49% to €649m due to average price increases of 53%.

With only a minor change of a 1% increase in the volume produced, price increases are forecast to cause the value of forage plants to grow by 5% to over €1.1bn.

Early indicator of agri performance

Commenting on the data, statistician in the CSO's agricultural accounts and production section Mairead Griffin said that this release provides an early estimate of the value of agricultural outputs, inputs, and income for 2022.

"While it is compiled with relatively limited information on volumes and prices, it nevertheless provides an early indicator of the performance of the agricultural sector in 2022," Ms Griffin said. 

"Our forecast suggests that while intermediate consumption costs will increase by a quarter to €7.6bn, the value of agricultural output at basic prices is expected to grow by 26% to €12.6bn."

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