Dan Boyle (Cork South Central, Green Party)
Link to this: Individually | In context

Question 105: To ask the Minister for Agriculture and Food the way in which farming will have to change as fossil fuel costs rise sharply in response to the global peak in oil production making the cost of machinery and chemicals unaffordable in years to come. [18753/06]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The cost of fuel and energy, driven by rising international prices, is an issue for all parts of the economy including the agricultural sector. The most recent data from the CSO Wholesale Price Index shows that the price of energy products rose by 10.9% in the twelve months to March 2006 with electricity rising by 7.1%, auto diesel by 11.4% and gas oil by 18.9%.

According to the Output, Input and Income Tables for agriculture, compiled by the CSO, energy and lubricants accounted for 7.8% of intermediate consumption for the sector in 2005. In addition energy costs may affect the price of other inputs such as fertilizer and contractor services. However, while significant, energy price increases are not the dominant factor in determining competitiveness in the sector. Rising energy input costs, and fluctuations in international prices, underline the importance of ensuring that all inputs are used efficiently.