The horticulture sector in Ireland is grappling with significant input price inflation, a trend that persists into 2024, according to the Teagasc Horticulture Development Department's recent analysis. The "Horticulture Crop Input Prices 2024" report reveals that, compared to the previous year, there has been a general uptick in input costs across all horticulture sub-sectors, albeit with some input categories like energy bucking the trend. Notably, labor costs have emerged as the principal inflation driver in 2024, accounting for approximately 42% of total input costs across most sectors and registering an increase of between 12.5% and 24.3%, sector-dependent.
With a farm-gate value of €521 million, horticulture stands as Ireland's fourth largest agricultural sector, showcasing a broad spectrum that spans plant and food horticulture. The sector's composition is diverse, encompassing mushrooms, potatoes, field vegetables, soft fruit, protected crops, outdoor fruit, nursery stock, cut foliage, and outdoor flowers and bulbs.
Since the inaugural 2021 report, horticultural input costs have surged by an average of 40%, underpinned by geo-political and climate change challenges that disrupt international sourcing for fruits and vegetables. This necessitates a market recalibration to uphold the economic and environmental viability of Ireland's horticultural output, alongside enhancing margins over costs for primary producers to foster investment and ensure generational business continuity.
Source: teagasc.ie