Genfitt Knowledge Report 2021-Predictions For The Agricultural Sector in 2022

Nov 09 2021

Genfitt Knowledge Report 2021-Predictions For The Agricultural Sector in 2022

By: Aoife Gallagher
Date: 9th November 2021

Last week at Genfitt, we launched our annual Knowledge Report for 2021. This is a research and analysis report that examines performance trends in the agricultural sector over the past year. This is the sixth year in which we have commissioned “The Knowledge Report” and overall, it indicates that the majority of businesses feel optimistic about what lies ahead in 2022 and beyond.

This report is based on qualitative research and therefore is not statistically representative of the market, but does provide a robust review of trends for 2022. All research was done remotely, via a survey, telephone interviews and zoom groups. We’re hoping that for 2022 we can return to face-to-face.

Respondents of the survey (machinery dealers, businesses in Agri trading and manufacturers) made some interesting predictions for the agricultural sector in 2022. The main topics of discussion when making predictions for 2022 were:

Brexit
Input Prices & Supply Of Stock
Adaptability

Brexit

Respondents believe Brexit will bring increased legislation in 2022 for those exporting to the UK. Uncertainty remains around the impact this will have on the agricultural sector. Increased shortages of second-hand tractors and machinery coming into Ireland from the UK will continue to cause problems for the sector. The recent shortage of hauliers is adding more delays and expense to the transportation of goods in and out of the UK. The tariffs on imports will continue to cause havoc in 2022 for goods coming into the country, adding to the long-term implications of Brexit.

Input prices & supply of stock

The impact of Covid and Brexit, as well as increased demand and lockdowns in other countries, meant that shipping and container costs more than doubled in price during 2021.
Respondents predict that prices will continue to increase across many aspects of the sector. The extraordinary increase in fertiliser prices will have a worrying effect on tillage, dairy & beef farming in 2022. The price of crude oil and natural gas has risen considerably. This will result in increasing prices for both road and green diesel. High prices at the pumps will impact farmers & contractors who use thousands of litres of diesel each year. Recently animal feed has seen a huge price hike and no doubt will continue to remain high in 2022 as a result of strong grain markets. Steel and timber are at an ultimate peak and there is no sign of them reducing to pre pandemic levels just yet.

Adaptability

If the past two years have taught us anything, it’s that adaptability is key. Respondents said that adaptability will also be crucial in 2022, in order to overcome whatever’s next. Remote working, online working, less face-to-face contact will continue into the start of 2022 with the hope of more face-to-face contact later in the year. In the Agri sector, elements such as online bidding at livestock marts, on machinery and at land auctions are here to stay.

At Genfitt, we have currently 65 staff with increased flexibility. Our 12 sales reps are balancing office time with road time thanks to the new world of Zoom and WhatsApp.
Our overall prediction is that 2022 won’t be as good as 2021. But that doesn’t mean you should think of it negatively, it’ll be a stabilising year.

Genfitt would like to say a special thank you to all participants. Without their time and commitment, the Genfitt Knowledge Report would not have been possible. We hope you find the insights of value in this year’s report, and please do not hesitate to contact us directly with any feedback or suggestions.