CSO: Largest drop in agri incomes in south-east and mid-west in 2023
The south-east and mid-west regions suffered the biggest drop in agricultural income last year according to a new report published by the Central Statistics Office (CSO) today (Wednesday, October 16).
Farmers, growers and producers in the south-east, which includes Carlow, Kilkenny, Waterford, and Wexford, experienced a 61% slump in income to €268 million last year while farmers in the mid-west, which includes Clare, Limerick, and Tipperary, saw the second highest fall in agri-income dropping by 60% to €303 million in 2023.
According to the CSO agricultural income - which factors in the cost of net interest and land rental, fell on a national scale by more than €2 billion, down 49% compared with 2022.
Both the south-east and the mid-west are major milk producing regions generating an estimated 40% of Irish milk.
According to the CSO the mid-west region's "high dependency" on milk for income and the south-east region's position as the third largest milk producing region in the country combined with the fact that it is the second largest producer of cereals help explain why both regions suffered such a slump in income last year.
Latest analysis shows that both milk and cereals were the two agricultural products that saw the largest decrease in value in 2023, with milk down 30% and cereals by 52%.
Last year there was a €1.5 billion reduction in milk values, which the CSO said was mainly attributable to a 26% fall in prices, while the value of cereal production decreased by €377 million due to both volumes and prices contracting by roughly 30%.
The south-west, which includes Cork and Kerry - the largest milk producing region in the country, saw its operating surplus fall by 46% or €526 million to €624 million which in turn led to a 55% slump - €546 million - in agricultural income to €456 million.
According to Mairead Griffin, CSO statistician in the agricultural accounts and production section, at a national level, there were "significant contractions" in the value of agricultural output at basic prices which was down by €1.6 billion.
Its latest report also shows that intermediate consumption costs contracted by 2%, €127 million, while the operating surplus by 39% or €1.9 billion and entrepreneurial income, which factors in the cost of net interest and land rental contracted by €2 billion.
Griffin added: "To fully understand the performance of agriculture in 2023, it is worth comparing it with 2019, the last year before the upheaval to world markets caused by the Covid-19 pandemic and the war in Ukraine.
"Compared with 2019, which was not a particularly good year for the sector, the value of agricultural output at basic prices in 2023 was up by €2.8 billion, intermediate consumption costs were €2.2 billion, operating surplus grew by just €45 million while entrepreneurial income was €316 million".
Although Griffin acknowledges that while the "headline figures are all very negative for 2023" she said that there is some "good news" in relation to output values.
"A 43% increase in potato prices resulted in their value growing by 30%.
"The Dublin and mid-east region - which includes Dublin, Kildare, Louth, Meath, and Wicklow - which produced 57% of Irish potatoes, benefitted most from this rise.
"The value of pigs increased by 7% and poultry was up 8%. The border region - Cavan, Donegal, Leitrim, Monaghan, and Sligo- , which produced almost 71% of Irish poultry and a quarter of Irish pigs, gained from these rises," she added.
The latest CSO report highlights that while the south-east and mid-west regions suffered the biggest drop in agricultural income in contrast the west - Galway, Mayo, and Roscommon - and border regions which, at 17%, had the lowest reductions in operating surplus.
Meanwhile the border region saw agricultural income contract by 22% while it fell by 19% in the west.
