Farm price pressures: Farm input prices increase as output figures drop

The agricultural output price index decreased by 1.4% in October 2018 compared with September 2018, according to the latest figures released by the Central Statistics Office (CSO).

The agricultural input price index increased by 0.8% for the same period, the office reports.

The resulting terms of trade index decreased by 2.1% in October 2018, according to the CSO.

Source: Central Statistics Office

Input price increase

On an annual basis, the agricultural input price index was up 7.0% in October 2018 compared with October 2017.

This index was driven by hikes in energy, fertiliser and feeding stuffs, which saw increases of 14.5%, 9.1% and 10.0% respectively.

Of energy costs, motor fuels saw the most dramatic increase, jumping by a hefty 18.2%, while straight fertilisers and straight feeding stuffs saw lifts of 12.1% and 16.4% respectively in their fields.

Cut to output prices

The agricultural output price index decreased by 1.8% in October 2018 compared with October 2017.

A further comparison of the October 2018 output sub-indices with the October 2017 sub-indices shows that milk, pigs and cattle decreased by 10.5%, 8.9% and 2.4% respectively.

Cattle excluding calves decreased by 2.3% while calves sank by 16.6% in index.

Sheep and poultry saw marginal gains of 1.3% and 0.3% respectively

Crops on the other hand saw an increase in price with a 35.2% rise recorded between October 2017 and 2018.

Potatoes climbed a massive 80.8% in index, while cereals recorded a considerable 43.1% rise.

Eggs and wool were steadier in index performance, with eggs increasing by 3.2% in index and wool slipping down 2.5%.