Irish Dairy Farmers Saw Revenue Fall by Over €600m

Irish dairy farmers recorded a revenue decline of more than €600m in the first half of 2026. Average farmgate milk prices across the country were substantially below those seen in the first six months of 2025, when pricing was at a higher level.

Costs for key inputs eased slightly from their historical peaks but remained high compared with longer-term norms. The main expenses included chemical fertilisers, concentrated dairy feed and energy. Lower milk prices combined with these costs to reduce margins for many pasture-based family farms.

The weaker margins affected farms’ ability to meet routine working-capital needs, make repayments on commercial development loans and carry out planned capital investment. The decline in farm cash flow also affected spending in parts of the rural economy, including machinery dealerships, agricultural contractors and local trade suppliers.

Weather conditions added to the financial pressure during early lactation and spring turnout. Persistent, unseasonal rain and low ground temperatures in major dairy-producing areas in the south and west delayed grass growth. They also prolonged the period during which cattle were kept indoors during winter.

The extended housing period reduced emergency forage reserves and led farmers to buy additional commercial concentrates. This increased variable operating costs while milk production and milk-solids deliveries were below seasonal averages.

Farm organisations called on lenders and processing co-operatives to provide targeted liquidity measures. The requests included more flexible working-capital facilities, temporary pauses in loan repayments and funds designed to smooth margins. Maintaining sufficient operating liquidity for the rest of the year was identified by sector leaders as a priority.