The operating surplus in Irish agriculture has increased by almost one-third since 2019, according to figures released by the CSO.

The CSO’s first estimate of agricultural operating surplus for 2021 shows that it grew by 18% relative to 2020 and by 32% compared to 2019.

Agricultural operating surplus is expected to increase by €589m to €3.85bn this year. The figure for 2019 was €2.93bn.

The main outputs driving this increase are milk and cattle.

Milk volumes are expected to increase by 6.2% in 2021 and with significant price increases it is projected that the value of milk output will rise by 23% to €3.38bn.

The value of crops is expected to increase by €177.6m or 9% to €2.12bn in 2021

While the volume of cattle production is expected to fall by 3.5%, the overall value is projected to rise by 10% or €230m due to stronger prices.

Sheep output is projected to increase by 19% or €59m to a total of €362m.

The value of crops is expected to increase by €177.6m or 9% to €2.12bn in 2021. The volume of cereal production is expected to increase by 15%. A combination of additional volumes and stronger prices will see cereal output grow by 46% or €132m to €422m.

Pig outlook

In contrast, however, output from the pig sector is forecast decrease by 6% or €37m. The value of poultry production is set to rise by €8m or 4.3%.

Overall, the value of agricultural output at basic prices is expected to rise by 12% or more than €1bn to €9.97bn.

In terms of inputs, intermediate consumption costs are projected to rise by 7% or €392m to €6bn. The volume of feeding stuffs consumed by Irish farmers is expected to increase by 7%. It is estimated that the overall cost will rise by €260m or 17% to €1.8bn.

Fertiliser

Fertiliser costs for 2021 will also be well up. Volumes are expected to increase by 4.3%; and with prices also rising, the overall cost of fertilisers is forecast to grow by €59m or 11% to €591m.