Teagasc records four years of significant input price inflation in the horticulture sector

Valued at €521 million (farm gate value) horticulture is the fourth largest sector in Ireland after dairy, beef and pigs in terms of gross agricultural commodity output value. Picture: Submitted

The horticulture sector is diverse and covers plant and food horticulture. Horticulture food includes mushrooms, potatoes, field vegetables, soft fruit, protected crops and outdoor fruit.

Amenity horticulture includes nursery stock, protected crops, cut foliage, and outdoor flowers and bulbs.

The operating environment for Irish horticulture producers is constantly evolving.

While Brexit, Covid-19 and the Russian invasion of the Ukraine characterised the commentary on input prices during 2021 to 2023, this year the commentary emphasises the subject of climate change, specifically the increased frequency and spatial pattern of extreme weather leading to difficult growing conditions right through from plant establishment to harvesting.

In 2024, labour cost is the key driver of inflation and outweighs reductions in other input categories including energy.

Labour represents on average 42% of total input costs for most sectors. As an input, it has increased by between 12.5% and 24.3% depending on sector.

Dermot Callaghan, head of Teagasc horticulture development department said: “Margin over costs for Irish horticultural producers will need to improve to incentivise investment and allow for generational renewal of businesses. A market response will be required to underpin the economic and environmental sustainability of Irish horticultural production into the future.”

The complete report can be downloaded by clicking on this link: https://www.teagasc.ie/publications/2024/horticulture-crop-input-prices-2024.php.