- Credit: citizenside.com
The cost of agricultural inputs is on the rise, according to a study.
The AF AgInflation Index shows agricultural production inputs went up by 4.92% in the 12 months to September 2017, mainly because of fuel price.
Fuel prices rose 11.5% due to the increase in the cost of Brent Crude Oil per barrel (bbl) and a devaluation of Sterling against the US Dollar in the first half of the year.
AF Group chief executive Jon Duffy said: “Fuel is the primary driver in this latest AF AgInflation Index. In the 12 months to September 2017 Brent Crude Oil has increased from US$46bbl to US$55.9bbl. Couple this with an initial devaluation in the exchange rate between September 2016 and February 2017 of 1.31 to 1.25 US dollars to Sterling (US$/£), the past six months has seen the exchange rate strengthen to 1.33US$/£ in September 2017.
The index also showed the Retail Price Index at 2.2% against 4.92% inflation of agricultural production costs.