Irish Dairy Farmer Income Plummets by 69% in 2023, Teagasc Report Reveals
Source: The DairyNews
According to the Teagasc National Farm Survey 2023 released today, the average income for Irish dairy farmers dramatically fell to €49,500 in 2023, marking a 69% decrease from the previous year. This decline in income represents a significant shift for the sector, which saw record highs in 2022.
The survey, representing nearly 85,000 farms across Ireland, indicated a broader trend of declining incomes across all farming systems, with the average family farm income falling by 57% to €19,925. Teagasc attributes this downturn primarily to a sharp decline in dairy and tillage farm incomes, driven by lower commodity prices for milk and cereals, reduced production volumes, and persistently high input costs.
In 2023, dairy and tillage sectors, which collectively accounted for over half of the farm income in Ireland, experienced considerable volatility. This variability underscores the unstable nature of farm income, particularly in these sectors. Milk prices, for instance, fell by 28%, while cereal prices saw a decrease of 30% to 35%.
The report also highlights struggles in the drystock sector, where cattle and sheep farms saw decreased outputs and high production costs, leading to substantially reduced incomes compared to 2022. Despite an increase in finished cattle prices, lamb prices dropped by about 3%.
Further compounding the challenges, cereal yields were significantly lower in 2023 due to adverse weather conditions during the growing season and at harvest, impacting the tillage farm incomes, which plummeted by 71% to an average of €21,400.
On cattle farms, despite a 6% increase in the value of output driven by higher cattle prices, increased production costs and challenging weather conditions dampened the gains, resulting in a 15% decrease in average income for cattle rearing farms.
In 2023, dairy and tillage sectors, which collectively accounted for over half of the farm income in Ireland, experienced considerable volatility. This variability underscores the unstable nature of farm income, particularly in these sectors. Milk prices, for instance, fell by 28%, while cereal prices saw a decrease of 30% to 35%.
The report also highlights struggles in the drystock sector, where cattle and sheep farms saw decreased outputs and high production costs, leading to substantially reduced incomes compared to 2022. Despite an increase in finished cattle prices, lamb prices dropped by about 3%.
Further compounding the challenges, cereal yields were significantly lower in 2023 due to adverse weather conditions during the growing season and at harvest, impacting the tillage farm incomes, which plummeted by 71% to an average of €21,400.
On cattle farms, despite a 6% increase in the value of output driven by higher cattle prices, increased production costs and challenging weather conditions dampened the gains, resulting in a 15% decrease in average income for cattle rearing farms.
23.09.2024
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