According to figures from the Central Statistics Office (CSO), the cost of fertiliser in Ireland has dropped by 45 per cent over the past year. Reductions were also seen in feed and energy costs, which has lightened the financial burden on farmers. The agricultural input price index of the agency decreased by 15.1 per cent on an annual basis in February. The largest decreases in input costs were attributed to fertilisers (down 45 per cent), feed (down 14.9 per cent) and energy (down 3.9 per cent).
After Russia invaded Ukraine, causing a surge in natural gas prices, fertiliser costs initially increased. As natural gas is crucial for producing most nitrogen-based fertilisers, this had led to a rise. However, these input costs have since reduced, leading to a parallel decrease in output costs, which usually influence consumers’ food prices.
The agricultural output price index of the CSO diminished by 7.6 per cent in the 12 months leading up to February. The greatest output cost reductions were recorded in cereals (down 31.6 per cent), milk (down 16.6 per cent) and poultry (down 3.5 per cent). Nonetheless, the prices of potatoes (up 75.5 per cent), sheep (up 18.4 per cent) and vegetables (up 13.1 per cent) increased.
In February, the monthly output price index saw an increase of 2.3 per cent. Milk price experienced the most considerable monthly change, witnessing a 6 per cent hike.