Prices of fertiliser and energy for the year are expected to be higher than 2018, according to the Teagasc mid-year outlook.

Fertiliser

Fertiliser prices have remained high so far this year, approximately 7% above the same period last year. This is influenced by higher oil prices, the report says.

Overall, fertiliser prices are expected to remain above 2018 levels. An increase in usage this year reflects better weather conditions for spreading.

Energy

Meanwhile, the prices of Irish fuel and electricity have continued to increase slowly in the first half of this year. Teagasc said that with uncertainty around oil price movements due to global supply tensions, a forecast for the rest of the year is difficult.

Feed

Elsewhere, the price of feed will stay broadly similar to 2018 levels. However, savings will be made on livestock farms due to lower use of feed.

For example, it is suggested dairy feed use will decrease by 20% per head in volume terms on last year.

In the first half of this year, feed prices were higher than the same period last year. But for the second half of this year, it is expected that there will be an increase in the use of feed barley from storage which has so far not been used due to “competitively priced” maize imports. Higher yields of Irish grain are expected this year, compared to a lower global maize harvest. A 30% decrease in farmgate cereal prices for the 2019 harvest is forecast.

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Better weather offsetting rising input costs – Teagasc