The rising cost of building materials is causing a general slowdown in construction in the agricultural sector.

Shed and material suppliers told the Irish Farmers Journal at National Ploughing Championships that price pressure is continuning to put a dampener on any unnecessary infrastructure projects on farms.

While building in the dairy sector has picked up from very low levels at the beginning of the year, other sectors have yet to see any major rebound.

Suppliers are saying that most of the concrete work being done at the moment is being carried out to either ensure compliance with nitrates rules or by farmers planning to push tank capacity beyond current regulatory requirements.

A similar situation was described by steel fabricators, with steel demand for new sheds. Many half-finished jobs being completed by farmers who had been waiting for prices to fall are deciding to move projects forward rather than wait any longer.

Handling units are still moving, suppliers maintained this week. The comments come weeks after fabricators were hit with a €100/t to €120/t steel cost hike.

One concrete company based in the southeast told the Irish Farmers Journal that sales were back 50% on last year, as it described demand as “hit and miss”.

The company has upped prices by 40% since January and another price rise is likely, which it expects to dampen demand further. This increase is before the new 10% concrete levy announced in the budget is taken into account..

Some demand in dairy

Sales manager at shed supplier Euronit, David McMurty, said that the dairy sector was adjusting somewhat to higher shed and steel prices.

Extension work was more common now than fresh projects and the company was hoping for an upturn in demand in the final months of the year, aided by favourable milk prices.

“Demand at the minute is recovering somewhat. It’s been a wee bit quieter this year than over the past couple of years,” McMurty told the Irish Farmers Journal.

“There’s a lot of extension work going on this year as opposed to big new sheds but there are a few new buildings going on now.”

Of the sheds that are being built, the majority are TAMS-approved, he added.

O’Donovan Engineering’s Philip Sweetnam said that demand for handling facilities had steadied and that general farmer sentiment appears to be improving.

Sweetnam stated that demand was strong this year for calf housing as farmers are seeking to build housing capacity in anticipation of tightening calf movement and sale regulations.