Ireland has emerged as the European Union’s inflation hotspot for farm-gate prices, with agricultural producer prices rising an unprecedented 19.3% year-on-year in the first quarter of 2025, according to new data released by Eurostat. This is more than seven times the EU average of 2.6% and highlights significant pressures within Ireland’s agri-food sector.
Milk, Eggs, and Cereals Fuel Price Surge
Notable increases in staple products are driving the price hike:
- Milk: +12.6%
- Eggs: +10.7%
- Cereals: +9.6%
The price volatility is linked to a range of factors including rising global commodity prices, input cost inflation, and a significant decline in Ireland’s cattle herd—over 200,000 fewer cows in 2024 alone. These supply-side shocks are pushing up producer prices while exposing vulnerabilities in the country’s food production systems.
Impact on Consumers and Farmers
While consumers have seen the effects at the retail level—for instance, the price of 2L of milk has increased by €0.27—persistent high costs for feed, fuel, and energy are offsetting the benefits for farmers. Irish food inflation remains around 3%, and supermarkets are responding with more price promotions as cost-conscious shoppers hunt for better value.
Industry experts note that while higher farm-gate prices may appear beneficial on the surface, the profitability of producers remains under pressure. This reflects a wider EU challenge of maintaining farm viability amid inflation, sustainability transitions, and market uncertainty.
