2021 will end with agriculture output prices for the year up 10.3% compared to 2020, according to the Central Statistics Office (CSO).
The statistics agency’s preliminary estimates for this year capture the increasing prices paid to farmers so far in 2021, but also the rising input prices, with the latter set to increase by 6.7% in 2021 this year compared to last.
These two figures will result in an increase in the overall terms of trade for agriculture of 3.4% for this year compared to 2022.
The increase in the output price index is largely down to increased prices for sheep and milk, the CSO outlines, while increases in the input price index are mainly due to fertilisers and energy costs.
Agriculture output price index
Delving a bit deeper into the output price index, we see that the index for cattle increases by 12.9% compared to 2020.
Sheep see the largest increase in index, rising by 18.6% this year. Milk is the second strongest performer, increasing in index by 14.8% compared to last year.
The only decreases in the output index are for pigs and poultry, which fall by 7.4% and 0.4% respectively versus 2020 figures.
In the round, the overall output price index for animals and animal products increases by 9.6%.
For crops, cereals (including seeds) increase in output price by 3.3%, while potatoes (including seeds) increase by 7.7%.
Fruit and vegetables see an increase in output price of 1.3% in 2021 compared to 2020.
The overall output index for crops, when these figures are taken into account, increases by 3.5% on last year’s figures.
Input price index
Turning to inputs, the CSO’s figures show that there are increases to input costs across the board this year.
The largest increase is for fertilisers, which rises by 15.4% this year on last year.
This is closely followed by energy, which increases by 12%.
Feeding stuffs increase by 8.8% this year, while seeds see a 6.7% rise.
Plant protection products and veterinary expenses increase as well, though more marginally.
The former sees a very slight increase of 0.8%, while the latter increases by 1.2%.