The Central Statistics Office’s (CSO’s) final estimate of operating surplus in agriculture in 2019 shows an annual increase of €110.7 million – equating to a rise of 3.8%. However, agricultural prices decreased over the same period.
Published today, Friday, July 31, the office’s estimate noted that the total surplus was up from €2.94 billion in 2018 to €3.055 billion last year.
This increase is in line with the trends shown by other CSO short-term indicators in agriculture.
Source: Central Statistics Office
The main factor contributing to this change was a decrease of €390.5 million – some 6.5% – in expenditure on intermediate consumption, according to the office.
While the volume of crops produced by Irish farmers increased by 7.8%, lower prices resulted in the value of crops falling by €228.9 million (-10.8%), from €2.13 billion to €1.8 billion.
The main crops contributing to this decline in production were forage plants which, because of falling prices, decreased in value by €276.3 million (-20.6%), the CSO noted.
Despite the volume of milk production increasing by 5.1%, lower prices resulted in the value of milk increasing by just €45.2 million (+1.8%), from €2.56 billion to €2.6 billion.
While there was very little change in the volume of pigs produced in 2019 (+0.4%), large price increases resulted in the value of pig production increasing by €84.0 million (+18.3%), from €459.1 million to €543 million.
Total intermediate consumption fell by €390.5 million (-6.5%), decreasing from €6.038 billion to €5.65 billion.
The cost of forage plants consumed by Irish farmers fell by €273.4 million (-20.5%) in 2019, down from €1.33 billion to €1.06 billion.
The volume of fertilisers consumed by Irish farmers fell by 7.6% in 2019 but price increases resulted in the cost of these fertilisers decreasing by just €3.8 million (-0.7%), from €582.1 million to €578.3 million.
Expenditure on other goods and services increased by €37.6 million (+7.3%), rising from €514.9 million to €552.5 million.