11 March 2024

Horticulture Crop Input Prices 2024

The Horticulture Crop Input Prices 2024 report from the Horticulture Development Department provides a comprehensive analysis of the state of input price inflation within the Irish horticulture sector for the year 2024, building on annual insights since 2021.

The report highlights a significant increase in input prices across all horticulture sub-sectors, averaging a 40% rise since 2021, with labor costs emerging as the primary driver. The backdrop of these increases includes geopolitical tensions, climate change impacts, and shifts in international trade patterns, which have all played a role in disrupting the sourcing of essential inputs like fruit and vegetables.

The report emphasizes the necessity for the horticultural industry to adapt to these challenges by adopting new technologies that allow for more localized production, reducing labor needs, and mitigating the environmental impact of long supply chains. Such technological adoptions aim to enhance sustainability, reduce food waste, and decrease packaging needs, which are vital for the sector’s future resilience.

A detailed comparison of input price inflation from March 2023 to January 2024 across various sub-sectors reveals that all areas have experienced price increases in inputs. The report highlights the strain placed on the sector by the surge in labor costs, which now represent, on average, 42% of total input costs. This increase is largely due to higher national minimum wages and the costs associated with employing workers under the General Employment Permits (GEP) scheme.

The report concludes with sector-specific analyses, detailing the unique challenges and price inflation impacts on sub-sectors like mushrooms, nursery stock, soft fruit, top fruit, and vegetables. Each section provides insights into the specific cost drivers. For instance, in the mushroom sector, labor and substrate costs are highlighted, while in the vegetable sector, the focus is on labor, energy, and land rent.

Download the Horticulture Crop Input Prices 2024 report (PDF)