Huge hikes in the cost of a wide range of farm inputs including building materials, fertiliser, feed, diesel and plastic are taking the gloss off recent improvements in the value of farm outputs.

Of particular concern for many is a surge in the price of timber and steel.

The latest CSO wholesale price index for construction materials, published on 21 May 2021, shows timber prices in April recording an annual increase of 30% to 34%.

Structural steel has increased by 25% on the corresponding period in 2020, while reinforcing metal is up 14.4%.

The increase in steel is feeding into increased costs in concrete products with a high level of reinforcing. The surge in prices is being driven primarily by the production of raw materials being curtailed globally by the coronavirus pandemic, while supply chains are also being significantly affected.

Domestic timber supplies are also suffering badly from tree-felling licensing delays. This has resulted in many suppliers and manufacturers reducing the period for which quotes for supplies or services remain open for, from a period of a number of months to as little as two weeks.