December 15, 2022

Ireland's average dairy farm income increases to record US$157,000

Farming agency Teagasc said Ireland's average dairy farm income has increased by 50% to record EUR 148,000 (~US$157,000, EUR 1 = US$1.07) this year thanks to a global surge in milk prices, The Irish Times reported.

Due to the lack of growth in global milk supplies this year, Irish dairy farmers have benefited from a 44% increase in milk prices.

That was enough to offset an EUR 0.08 (~US$0.085) per litre (30%) increase in milk production costs, according to the agency's latest economic outlook report.

Dairy has historically been the most profitable sector of Irish agriculture. Since the lifting of EU milk quotas in 2015, the sector has significantly increased output.

Teagasc said Irish milk production in 2022 was more or less in line with 2021, as dry conditions limited grass availability over the summer of 2022.

Teagasc predicted that milk prices would fall by 15% next year as global milk production resumes and the rate of demand growth slows. While dairy farm incomes are expected to be lower in 2023, the average dairy farm income of EUR 104,000 (~US$110,000) is expected to be one of the highest ever recorded,.

While the dairy sector dragged the overall average up, most farming enterprises - cattle, sheep, and swine farms - are expected to have lost money this year due to higher input costs, according to Teagasc.

Income from cattle rearing farms is expected to fall by 20% in 2022, with higher production costs cancelling out any benefit from higher cattle prices.

-      The Irish Times