Horticultural costs jump 51% in four years amid labour and climate challenges

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The Teagasc Horticulture Crop Input Prices 2025 report highlights a 42.6% share of labour costs in horticultural inputs, with rising expenses and climate disruptions calling for urgent action to ensure sector sustainability

Horticulture

1 April 2025

The recently released Teagasc Horticulture Crop Input Prices 2025 report highlighted a significant rise in costs across all horticultural sub-sectors, driven by increasing labour expenses, climate-related challenges, and supply chain pressures.

The report warns that without price adjustments and investment in sustainable solutions, the sector may struggle to remain viable.

Rising input costs

Since 2021, horticultural input costs have surged by an average of 51%, with increases ranging from 36% to 76% depending on the sub-sector.

A year-on-year comparison between January 2024 and January 2025 shows continued inflation in key inputs, making it harder for growers to manage costs and maintain profitability.

Labour remains the single largest expense, accounting for 42.6% of overall input costs.

Rising wages, combined with ongoing labour shortages, have significantly contributed to cost inflation.

Despite some investment in automation and labour-saving technologies, adoption remains slow due to high costs and limited availability.

Climate extremes

Weather-related disruptions have intensified, further straining horticultural operations.

Storm Éowyn in January 2025 followed a difficult 2024 growing season, marked by excessive rainfall that delayed planting and harvesting.

Poor pollination conditions in spring 2024 also reduced yields in crops such as apples, while low light levels impacted protected crops like strawberries and tomatoes.

Future climate projections suggest more frequent heavy rainfall events in autumn and winter, alongside prolonged dry periods in summer.

These shifts will likely lead to further challenges in crop production, increasing the need for investment in more resilient growing systems.

Market support

The report stresses that primary producers require better margins to cover rising costs and maintain financial stability.

Longer-term supply agreements with retailers and wholesalers could help create stability, incentivising growers to invest in sustainable production systems.

While technologies exist to improve efficiency and extend the growing season, their high cost means that financial support will be necessary to encourage widespread adoption.

Without such investment, the sector faces the risk of a widening gap between labour availability and the rollout of automation solutions.

Securing the future of Irish horticulture

Despite these challenges, the report highlights that horticultural produce remains one of the most environmentally sustainable food sources, offering significant health benefits to consumers.

However, without market adjustments and strategic investment, Irish horticulture risks becoming less competitive, threatening the future of domestic food production.

The Teagasc Horticulture Crop Input Prices 2025 report highlights the urgent need for more financial support, fairer pricing, and investment in new technologies that can help growers adapt to climate challenges and labour shortages.

Without these changes, the future of Irish horticulture could be at risk.

The full report can be found here.