Macra is warning that continued cost inflation risks are making the horticulture sector increasingly unattractive and unviable for young growers, following reports that the cost of producing fruit and vegetables in Ireland has risen by almost 4% over the past year.

According to the latest Teagasc Horticulture Crop Input Prices report, input costs across the horticulture sector rose by 3.9% between January 2025 and January 2026, with significant increases in fertiliser, labour, energy and transport costs.

Fruit production costs increased by 7.5%, while vegetable production rose by 4.7%.

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Macra has warned that the situation has serious implications not only for growers but for Ireland’s long-term food security and sustainability ambitions.

The concern was also raised regarding further pressure caused by recent volatility in energy markets, particularly rising gas prices affecting protected crop producers.

Rising input costs

“Our young growers have been grappling with rising input costs, especially with recent political upheaval having knock-on consequences on energy costs,” Macra president Josephine O’Neill stated.

“These increases are pushing our young growers to the brink, threatening their future in the sector and undermining the attractiveness of the sector.

“Significant support is needed to ensure that our young growers can continue to produce such high-quality produce while being economically viable.

“While inflation, spiralling costs and wide-ranging factors outside of their control continue to threaten the viability of young growers, they are frequently forgotten in policy development and the delivery of targeted supports. Considering the outcomes of this report, especially the rising costs highlighted, this can no longer continue.

“Our Government must ensure that meaningful supports, specifically targeted to young growers, are developed and delivered to ensure that these challenges can be addressed,” she said.

Targeted measures

Macra is calling on Government to introduce targeted measures to support horticultural producers, including investment supports for energy efficiency and automation, increased assistance for young entrants and stronger recognition of horticulture within national food and climate policy.

Without urgent intervention, Ireland risks a further decline in domestic fruit and vegetable production capacity at a time when demand for locally produced food continues to grow, Macra said.