Green diesel prices have increased dramatically in recent weeks, with many contractors reporting a notable price hike in the last month. This is in line with crude oil, which has now reached nearly $50/barrel, a $5 increase since the start of May.

Prices quoted from fuel companies in the south and southeast are around 58c/l and 59c/l, while a contractor in Cork said he paid 54c/l including VAT just over 10 days ago.

A contractor in the east paid 64c/l for green diesel, including VAT and delivery, this week and noted that the price was at 59c/l just a few weeks ago.

Prices are higher again in the midlands and west, with contractors paying anywhere from 63c/l to 70c/l, including VAT.

“What we’re hearing is that the big oil producers had high stocks and supplies, which is why the price was low,” said a spokesperson for West Cork Oil Company Ltd. “But now they’re reducing supplies and the price is shooting up.”

With many contractors facing debts outstanding from last year, the association of Farm Contractors Ireland (FCI) said that in the main, they are not going back in to farms this year until they are paid.

“The idea is to get the job done and get paid in a timely fashion. We’re not bankers,” said Richie White, chair of the FCI.

“The work is hard enough at the best of times but no one wants the financial headache of it. It’s very hard to manage – the whole contracting thing is at a crossroads.”

The wrap

The cost of silage wrap is largely in line with last year, with the best deals available for those buying in bulk. The lowest price quoted was €84 in the north of the country for a single roll.

In the south and southeast individual rolls cost €85 each, while the price is reduced to between €80/roll and €84/roll when 10 or more are bought.

A slightly higher price of €86/roll was quoted in the midlands and west.

The Dairygold and Irish Cancer Society Wrap it Pink campaign continues this year, with each roll costing €90.

However, the raw material for silage wrap is DF resin, of which there are only two manufacturers in the world.

They have indicated to Irish suppliers that there will be a price increase in mid – June.

While the resin was cheap last year, their profit margins were tight and there are a number of other factors going against them this year, including oil prices and exchange rates.

Farmers are warned to be aware of variations in the thickness of silage wrap, which can affect quality.

There is a 13% difference in quality between 22 micrometer and 25 micrometer wrap, and farmers are advised to check the strength of the plastic they are buying in order to save money in the long run.

Lower quality wrap will require an extra layer or more on each bale and can be more costly from that perspective.