Irish Dairy Farm Incomes Surge by 113% in 2024

Dairy farm incomes in Ireland have experienced a dramatic increase in 2024, more than doubling with a 113% rise to an average of €108,189. This surge was largely driven by recovering milk prices and favorable grazing conditions from mid-year onwards, as highlighted by Teagasc’s National Farm Survey.

According to Teagasc, the slight easing of input costs, such as feed and fertiliser, also contributed to the increase in incomes. "The strength of the income recovery is a reminder that Irish dairy farm incomes are highly sensitive to milk price movements in successive years, a factor over which dairy farmers have no control," stated Teagasc.

The survey covered approximately 88,000 farms in Ireland, with 15,131 dairy farms included in the 2024 data. More farms moved to higher income categories with a significant decrease in those reporting a family farm income (FFI) below €30,000, dropping from 38% to 13%, while those in the highest income category grew from 16% to 46%.

Despite a 0.4% decline in total milk production, the increase in milk prices compensated for this, leading to a 15% rise in gross output per hectare. Production costs decreased by 4%, and direct costs decreased by 7%, bringing the average dairy gross margin per hectare up by 34% to €3,649.

Expenditure on fertilisers fell by 29%, while hired machinery and labour costs rose. Land rental expenses increased by 13% with nearly 80% of dairy farmers engaged in land rental. The Irish dairy sector continues to adapt and evolve a decade after the EU milk quota abolition, as detailed in the report.