As I am sure the Deputy will agree, the people of Ireland have shown great support for Ukraine and the Ukrainian people following the illegal invasion by Russia. The Government remains resolute in its solidarity and support and will continue to co-ordinate a humanitarian, economic and diplomatic response to the crisis. Significant implications are being seen across all sectors, including the agrifood sector. As well as the immediate humanitarian crisis, which takes priority, we need to take the necessary steps to ensure food security is maintained for EU citizens, for the Ukrainian people and in the wider global context.
Significantly higher production costs are a feature across all sectors in 2022, with higher fertiliser, feed and fuel prices leading to an increase in agriculture input costs. According to the most recent agricultural price indices release by the CSO, agriculture input costs rose by 38% in the 12 months to August 2022. Fertiliser costs are up almost 130%, feed is up 36% and energy is up 41% over the past year. These three farm inputs accounted for almost half of all farm inputs in 2021.
While farm output prices have also increased in the past year, the increase is lower than the rise in input prices. Output prices have increased by 31% in the 12 months to August 2022, with milk up 52%, cattle up 22%, pigs up 27% and sheep up 5%. Following a solid year for farm incomes in 2021, with average family farm incomes up by 26% to more than €34,000, Teagasc has forecast a decline in 2022 is now likely across most farm systems, apart from dairy farming, as output price increases will fail to offset the rise in production costs.
There are currently no signs of fertiliser prices easing much in the short to medium term as prices are being driven by a number of factors, including global demand. As Russia and Ukraine are significant sources of global cereal exports, accounting for approximately 30% of world wheat and barley exports before the invasion, availability of cereals globally has been impacted.