Ireland: Milk Prices Plummet by 26%, Cattle Prices Inch Up 3%
Source: The DairyNews
The latest data from the Central Statistics Office (CSO) reveals a challenging landscape for Ireland's agricultural sector in 2023, with significant declines in milk prices and output volume. Milk prices to farmers saw a sharp 26% decrease compared to 2022, resulting in a 4% decline in the volume of milk produced. This double blow led to a substantial 30% drop in the overall value of milk output.
The challenges extended to cereal production, where output volume plummeted by 26%, attributed to adverse weather conditions during the harvest and increased pressure on land availability for arable farming. The total area planted contracted by 6%, exacerbating the decline in overall cereal output, which fell by 48% to €362 million. Prices paid to arable farmers also dipped by 33%.
In contrast, the livestock sector experienced mixed results. While the value of all livestock increased by 1% to €4.6 billion, cattle prices rose by 3%, contributing to a 1% decrease in overall output value to €3 billion. Sheep output remained stable, but the pig sector saw a 19% rise in prices, albeit with a decrease in volume, resulting in a modest 7% increase in overall sector value to €667 million. Poultry prices and volume both rose by 5%, leading to an 8% increase in the sector's overall value to €220 million.
The Irish Farmers' Association (IFA) President, Francie Gorman, highlighted the price volatility affecting farmers in the current market. The CSO figures underscored a 13% decline in the value of agricultural output at basic prices to €11.2 billion in 2023, with the agricultural operating surplus decreasing by 36% to €3 billion. Gorman expressed concern over spiraling input costs, primarily influenced by the Ukraine war, emphasizing the need for stakeholders in the food chain to recognize and address the pressures faced by farmers.
Denis Drennan, President of the Irish Cattle and Sheep Farmers' Association (ICMSA), emphasized the urgency for government officials and rural representatives to take notice of the concerning figures. He compared the situation to a hypothetical collapse in value in other sectors, warning that action is required to prevent irreparable damage to the engine of rural Ireland.
In contrast, the livestock sector experienced mixed results. While the value of all livestock increased by 1% to €4.6 billion, cattle prices rose by 3%, contributing to a 1% decrease in overall output value to €3 billion. Sheep output remained stable, but the pig sector saw a 19% rise in prices, albeit with a decrease in volume, resulting in a modest 7% increase in overall sector value to €667 million. Poultry prices and volume both rose by 5%, leading to an 8% increase in the sector's overall value to €220 million.
The Irish Farmers' Association (IFA) President, Francie Gorman, highlighted the price volatility affecting farmers in the current market. The CSO figures underscored a 13% decline in the value of agricultural output at basic prices to €11.2 billion in 2023, with the agricultural operating surplus decreasing by 36% to €3 billion. Gorman expressed concern over spiraling input costs, primarily influenced by the Ukraine war, emphasizing the need for stakeholders in the food chain to recognize and address the pressures faced by farmers.
Denis Drennan, President of the Irish Cattle and Sheep Farmers' Association (ICMSA), emphasized the urgency for government officials and rural representatives to take notice of the concerning figures. He compared the situation to a hypothetical collapse in value in other sectors, warning that action is required to prevent irreparable damage to the engine of rural Ireland.
