The output price index is projected to decrease by 8% in 2023 mainly due to the drop in milk price of 27.8%, when compared with 2022, the Central Statistics Office (CSO) has said.

As well as dairy output prices being down, sheep prices are down 2.5%.

However, despite an overall decrease, estimated increases are seen in the pig sector of 21.9% and for potato prices of 17.4%.

Output prices for cattle and pigs are estimated to be up by 3.7% and 5.6% respectively.

Lower input costs

Inputs costs for farmers are expected to be lower overall in 2023, with input price indices projected to have declined by 5.2% in 2023 when compared with 2022.

According to the CSO, the estimated fall in the input price index of 5.2% is significantly affected by a reduction in fertiliser prices of 30.4% in 2023.

Additionally, energy prices are also estimated to reduce by 2.8% over the same period.

Interestingly, sprays are up by 8%, veterinary expenses by 6.1%, seeds by 7.3% and feed prices by 2.8%.

CSO figures also show that the annual terms of trade is anticipated to fall by 3% when compared with the year 2022.