The headwinds of soaring energy costs and key inputs are starting to have an impact on the sector. Various hedging mechanisms and the forward-buying of inputs has provided some protection in 2022, but most of these are starting to unravel, exposing food production to the full impact of what is now a much higher cost base.

As Jack Kennedy reports in this week's edition, labour and energy costs are going to dramatically affect processing costs. Using figures from Tipperary Co-op, soaring energy prices look set to increase the cost of processing milk by the equivalent of €100 per cow or over 2c/l. Labour costs have also jumped.