A new report from Teagasc on the horticulture sector's input costs has found that input costs increases will in many cases exceed grower margins.
Hort producers will be unable to absorb the increases without a rise in the price they are paid for their produce, according to the report..
Throughout the sector there has been a steep increase in the cost of labour, packaging materials, fertiliser, energy, peat-based growing media and other key components of production.
One positive for the mushroom sector is that as regards energy prices, the sector uses biomass heating systems, so is not as exposed to the soaring energy costs.
However the mushroom sector is still looking at a 10.5 percent increase in the costs of production, which is a pretty sharp increase to be sure.
Dermot Callaghan, head of Teagasc Horticulture Development remarked that:- “Demand for Irish fresh produce has never been higher. We are just trying to spell out the facts in terms of input costs.”
