New research from agriculture advisory body Teagasc has said more horticultural food producers may cease trading, as a whole range of inputs costs erode producer margins.
The body warned that a market response was required to ensure the viability of producers that are responsible for putting fresh fruit and vegetables on supermarket shelves.
The research stated that in overall terms, retail prices for fruit and vegetables are now lower than they were in 2003, despite a recent uplift in prices for some produce.
It compared costs in March 2022 with March 2023 and found there were significant increases in the costs of labour, packaging, fertiliser and growing media.
Energy prices dipped slightly in the period, but were still 100% dearer than they were in 2021.
The authors stated that in recent years a significant number of primary producers in the vegetable and other sectors have ceased trading and early indications for the 2023 season showed this continuing.
Teagasc also estimated the area of field vegetable production will be down 7% this year.
