A rise in milk, crop and livestock prices this year is expected to offset the impact of lower farm output levels, the Central Statistics Office (CSO) said on Friday, leading to an increase in agricultural incomes for 2024.
Poor weather during the year, which delayed the planting season in early 2024 and then forced farmers to house cows earlier than expected, led to a drop-off in agricultural production this year.
However, early estimates from the CSO suggest commodity price rises, combined with the impact of falling input costs, will lead to an overall agricultural surplus in the Republic of €3.9 billion by the end of 2024, up one third from last year.
Milk volumes are projected to fall 4 per cent for the full year but the impact on farmers will be more than offset by a 7 per cent increase in milk prices.
The great Guinness shortage has lessons for Diageo
Ireland has won the corporation tax game for now, but will that last?
Corkman leading €11bn development of Battersea Power Station in London: ‘We’ve created a place to live, work and play’
Elf doors, carriage rides and boat cruises: Christmas in Ireland’s five-star hotels
This is still “well below” the value achieved in 2022 when global milk prices were more favourable for Irish farmers, said Mairead Griffin, statistician in the CSO’s agricultural accounts division.
Similarly, cattle volumes are expected to fall by 2 per cent but rise in value terms by 3 per cent, adding €46 million in value. Sheep volumes are up 16 per cent in value terms, an increase of €56 million, while pig prices are forecast to increase by 9 per cent or €58 million.
Meanwhile, total crop values are expected to be up by 5 per cent this year, despite delays to the planting season caused by wet weather in the early part of 2024.
Poor weather led to a 20 per cent decline in the total area planted with winter cereals this year, the CSO said, resulting in lower yields.
“As winter wheat accounts for most of the wheat grown in Ireland, wheat values are expected to be lower,” Ms Griffin said.
“However, the area planted with spring cereals increased by 8 per cent and when combined with higher yields, spring cereals volumes grew by 25 per cent.”
Consequently, total cereal values are expected to rise by 10 per cent, or €33 million, despite no growth in their average price.
Input costs, meanwhile, are on pace to fall by an estimated 5 per cent, some €377 million, to €7.9 billion this year, the CSO said. This is largely due to steep declines in the price of fertiliser, estimated to fall by 27 per cent this year, with feed stuffs also on pace to fall by around 6 per cent.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
