The agricultural input price index is up by 39.1 per cent in the year from July 2021, according to the latest figures released by the Central Statistics Office (CSO).
While the agricultural output price index is up by 28.4 per cent in the same period. The increase in the cost of farming is having a knock-on effect on groceries as consumers deal with an increase in food prices.
The annual terms of trade were down 7.7 per cent compared with July 2021.
Input price increases can be seen in fertiliser prices which are up 133.8 per cent, energy prices which rose by 51.3 per cent and in feed prices which are up 34.2 per cent in the last 12 months.
On a monthly basis, the agricultural input price index showed no change when compared with June 2022.
The agricultural output price index was down 1.6 per cent in the same time period. While the monthly terms of trade was down 1.6 per cent in the month of July 2022.
Anthony Dawson, Statistician in the Prices Division said: “Today’s release details agricultural price indices for July 2022. The most notable change is in the price of feeding stuffs, where the price index has increased by 2.2 per cent since June 2022 and by 34.2 per cent in the year from July 2021.
“This trend of input price increases is also seen in fertiliser and energy prices which are up 133.8 per cent and 51.3 per cent respectively in the year.
“Increases can also be seen in the output price sub-indices where the price of milk has risen by 51.1 per cent in the year, while cattle prices have increased by 16.0 per cent annually.
“More generally, the monthly agricultural output price index is down 1.6 per cent while the input price index is unchanged in the month from June 2022 to July 2022. As a result, the terms of trade for July 2022 was down by 1.6 per cent.
“A more detailed look at the monthly output sub-indices shows a decrease in cattle prices (-6.9 per cent) but an increase in milk prices (+3.7 per cent), while the monthly input sub-indices saw a growth in feed prices (+2.2 per cent) but a reduction in the price of fertilisers (-2.7 per cent) and energy (-2.8 per cent).
“Annually, the Agricultural Input Prices Index is up 39.1 per cent while the Output Price Index is up 28.4 per cent. The resulting annual change in the terms of trade was down 7.7 per cent.”