According to advanced estimates from the Central Statistics Office (CSO), agricultural profits are expected to increase by 30 percent or 1.127 billion euros in 2022.
The statisticians expect that the value of agricultural production at basic prices will increase by 26 percent in 2022 to 12,685 million euros. Milk is expected to generate 39 percent of the value of this production.
With almost unchanged production volumes and a price increase of 46 percent, the value of milk production is expected to increase by €1.567 billion to €4.962 billion.
In response to the report, ICMSA President Pat McCormack said: “No dairy farmer works a 40-hour week and if we went back to the hourly rate most would be paid minimum wage.
“Farmers’ concerns are growing about what’s coming down the line. There is no talk of falling input costs and farmers face a drop in the PPI and changes to the nitrates exemption.
“Farmers have struggled with price stagnation for years and it is now important to acknowledge the sensible year of 2022. We cannot have a case where prices come under pressure again.
“Minister McConalogue and his team must ensure that the price paid to the primary producer is protected.”
The CSO statisticians also noted that the value of almost all livestock will continue to increase in 2022, with cattle production expected to experience the largest increase as its value is expected to increase by 20 percent, or €527 million, to €3.108 billion.
Despite expectations that the volume of most crops in 2022 will decrease, crop values will increase by 14 percent to 2.438 billion euros. While volumes are expected to contract by 4 percent, the grain value is expected to rise 49 percent to €649 million on average price increases of 53 percent.
It is estimated that wholesale costs will increase by 25% or €1.522 billion to €7.647 billion in 2022.
With price increases of 141 percent, the cost of fertilizers is expected to increase by 97 percent, an increase of 585 million euros. The cost of animal feed is expected to rise 31 percent to €2.360 billion, with prices accounting for 28 percent of that increase.
Mairead Griffin, statistician for the CSO Agricultural Accounts and Production Section, commented that the latest figures provide an early indicator of the agricultural sector’s performance.
“The price of fertilizer saw the largest increase of all inputs. However, the full impact of higher prices was mitigated by a 19 per cent reduction in the amount of fertilizer used on Irish farms,” she said.
“With well-publicized price increases for energy and lubricants expected to average 39 percent for the agricultural sector, their cost to farmers is expected to increase by 42 percent to €649 million by 2022.
“On a more positive note, certain types of farm income have increased significantly, largely due to significant price increases.”
