Horticulture Sector continues to face Input Price Inflation

The Horticulture Crop Input Prices 2025 report, produced by the Teagasc Horticulture Development Department has been published. The report shows that the trend of significant input price inflation in the Horticultural sector since 2021, has continued for 2025. The report, the fifth of its kind, indicates an average 51% increase in the cost of inputs for the Horticulture Sector over the last 5 years.

While Input price inflation in the horticulture sector in Ireland has been significant in recent years, the impact of weather related events in the 2024 growing season, followed by significant storm damage in January 2025, has also impacted the sector.

In 2025, labour which accounts for, on average 42.6% of the input costs in horticulture, has contributed to overall input price inflation in the sector. Investment from the sector to reduce the reliance on labour and the impacts of climate events will require a market response to ensure the economic and environmental sustainability of Irish horticultural production into the future.

Michael Gaffney, acting Head of Teagasc Horticulture Development Department said; “The publication of this report indicates significant input price inflation since 2021 in the horticultural sector. Primary producers are facing significant challenges from multiple sources. The impact of climate events, from the loss of many early plantings due to rainfall in 2024, to the recent storm damage suffered by the sector, highlights the need for primary producers to receive a margin on their crops above costs to allow for investment in their businesses. The ability to reinvest, combined with longer term sourcing agreements can also contribute to encouraging generational renewal of businesses.”

Other points to note:

• Investment from the sector to reduce the reliance on labour and the impacts of climate events will require a market response to ensure the economic and environmental sustainability of Irish horticultural production into the future.
• Technologies to reduce the reliance on labour are beginning to be trialled in some key horticultural sub-sectors, however the financial cost of these technologies is significant and availability likely to be limited in the short to medium term. These investments will need to be supported.
• The sourcing of labour continues to be a significant challenge. The sector needs to avoid a gap between the availability of labour and availability of labour saving technologies.
• Technologies exist to extend the growing season of existing crops and also diversification into new market opportunities. Growers need to be incentivised to invest in these systems to bring production closer to consumption while reducing labour requirements, food waste and packaging associated with long supply chains.
• Horticultural fresh produce has a comparatively low environmental footprint compared to other foods and has significant health benefits for consumers.

Valued at €521 million (farm gate value) horticulture is the fourth largest sector in Ireland after dairy, beef and pigs in terms of gross agricultural commodity output value. The horticulture sector is diverse and covers plant and food horticulture. Horticulture food includes mushrooms, potatoes, field vegetables, soft fruit, protected crops and outdoor fruit. Amenity horticulture includes nursery stock, protected crops, cut foliage, and outdoor flowers and bulbs.

The operating environment for Irish horticultural producers is constantly evolving. In keeping with 2024, this year’s report focuses on the challenges that climate change and labour availability are having on the horticultural sector. Specifically, the increased frequency and spatial pattern of extreme weather leading to difficult growing conditions, especially planting conditions in early 2024, and the impact of storms in January 2025.

In 2025, labour continues the trend of 2024 in being a key driver of inflation. However, unlike in 2024, other important cost categories such as energy and fertiliser are increasing in 2025.

The complete report can be viewed here.