Input price inflation in the horticulture sector continues in 2023, a new report by Teagasc which compares production costs of this month with March last year has shown.
The Horticulture Crop Input Price Inflation 2023 report states that achieving a margin over costs continues to be challenging for many horticultural enterprises, despite some output price increases in 2022.
Teagasc estimates that the area of field vegetable production will be down by 7% in 2023, based on direct engagement with growers, according to the report published today (Monday, March 20).
A significant number of primary producers in the vegetable sector and other sectors have ceased trading in recent years, and early indications for the 2023 season show this continuing, Teagasc said.
Input costs
All horticultural sub-sectors have reported significant input price inflation across most inputs – specifically labour, packaging materials, and fertiliser – except energy, which is still at least 100% more expensive than in 2021, the report states.
In recent years input price inflation in the Irish horticulture sector, which has its roots in Brexit, the Covid-19 pandemic, and the illegal Russian invasion of Ukraine, has taken a firm hold, according to Teagasc.
The importance of underpinning Irish horticulture production has never been more in focus, Teagasc said while warning that a market response will be required to ensure sector viability.
“While Brexit, Covid-19 and the continuing Ukrainian crisis have pushed input prices much higher in recent years, input price inflation continues in 2023.
“When we set this upward input price trend against the fifteen-year downward trend in fruit and vegetable retail prices as depicted in the report, it is clear to see how primary producers could be squeezed.
“A response from the market is required if the viability of the industry is to be maintained, and the flow of local, nutritious, fresh, top-quality produce on to the supermarket shelves is to continue,” head of Teagasc horticulture development department, Dermot Callaghan said.
Irish horticulture
Horticulture is the fourth largest sector after dairy, beef and pigs in terms of gross agricultural commodity output value in Ireland valued at €477 million at farm gate, according to Teagasc.
Horticulture food includes mushrooms; potatoes; field vegetables; soft fruit; protected crops; and outdoor fruit.
Amenity horticulture, on the other hand, includes nursery stock; protected crops; cut foliage; and outdoor flowers and bulbs.