‘Green diesel’ price rises a real concern for local farmers
THE farming sector in common with all other sectors of society is struggling to deal with increased prices, but in particular diesel prices which have increased by 22 cent per litre in the last three weeks.
Prices of 1.36c/l to 1.39c/l, including VAT, were being quoted for market gas oil (MGO), more commonly known as green diesel earlier this week.
This is an increase in price of 18c/l to 22c/l on prices being quoted three weeks ago in the north-west. Energy analysts are predicting a further increase in energy prices in the coming weeks which will affect all sectors, not least farmers who have been coping with fuel and other cost rises over the last six months. Farmers locally told the Sligo Weekender that diesel prices are an immediate concern with many in the process of autumn harvesting.
In August we reported how prices farmers are paid for the commodities they produce are being “wiped out by unprecedented increases in the cost of inputs”, according to the Irish Farmers’ Association (IFA).
Despite increases in prices across a number of commodities in the last 12 months – as reflected in data released by the Central Statistics Office (CSO) – the IFA noted that input costs are up 40% on last year, overshadowing the 30% increase in commodity prices in the same period.
Rose Mary McDonagh, the association’s farm business chairperson, said in August: “It’s simply just not sustainable at current levels, and the fear is over where costs will go in the months ahead with all the volatility on international markets from multiple perspectives. The CSO figures show that aggregate agricultural output prices rose 1.7% in June versus May levels, with a 8.1% increase in pig prices seen as the main driver. On an annual basis, aggregate output prices were up 29.8% in June 2022 compared to June 2021, with positive gains reported across several sectors, including cereals (+34%), beef (+27%), pigs (+8.2%), sheep (+12%), poultry (+7) and milk (+44.7%).
The largest annual price increases were in select fertilisers (+181.6%) and feedstuffs (+45.6%), with motor fuel (+10.2%) recording the largest monthly increase.