National Farm Survey 2023 - Single Suckling Enterprise Factsheet
The National Farm Survey 2023 Single Suckling Enterprise Factsheet provides analysis of single suckling enterprises across Ireland, focusing on financial performance, production variations, and emerging trends within the sector.
Financial Performance in 2023
The average gross output in 2023 was €1,171 per hectare and therefore similar to 2022. Average direct costs per hectare increased by 11% in 2023. As a result, the average gross margin decreased by 11% on a per hectare basis. Average energy and fuel costs decreased by 21% year-on-year. Other fixed costs decreased by 21% year-on-year. In 2023, the decrease in costs supported an improvement in the average net margin per hectare to -€5 per hectare.
The gross output per cow increased by 3% in 2023. However, the gross margin per cow decreased by 8% in 2023 to an average of €645. This decline in gross margin is due to a 12% increase in total direct costs per cow. Total fixed costs decreased by 20% per cow. Mainly due to the lower fixed cost expenditure, the net margin per cow improved to -€14 per cow in 2023.
Variation in Production System
Single suckling to weanling and suckling to store systems are more prevalent than calf to finishing systems. However, calf to finishing system emerged as the most profitable, with a gross margin of €729 per hectare, compared to €393 for weanlings and €488 for stores. Farms employing calf to finish practices typically had higher stocking rates and better soil quality, with 65% of such farms operating on very good soils.
Changes in Sales Prices
Changes in animal sales prices between 2022 and 2023 varied across the categories of cattle sales. Average weanling prices increased by 6% between 2022 and 2023. Male store sales prices increased by an average of 26% between 2022 and 2023. Female store sales prices increased by an average of 14%. Sales prices increased by 1% for male and decreased by 1% for female finished cattle between 2022 and 2023.
Variation in Financial Performance
The 2023 data revealed a substantial difference in financial outcomes among the top, middle, and bottom-performing single suckling farms. Top-tier farms achieved an impressive gross output of €1,722 per hectare, with poorest performing farms at only €814. The gross margin of the top one-third of farms was over five times higher than that of the bottom one-third. The variation in expenditure on concentrate feed across the three groups of farms is less marked than the variation in gross output. It is evident that a higher proportion of the Top performing single suckling farms have a superior soil type.
Progress Towards Teagasc 2027 Targets
A comparison of 2022 and 2023 data shows small improvements in meeting Teagasc's 2027 targets for single suckling farms. The percentage of farms earning a gross margin above €615 per hectare increased by 1%, while the percentage of farms applying low emissions slurry spreading (LESS) grew from 28% in 2022 to 36% in 2023. However, the adoption of protected urea, while increasing slightly, remains below target, with only 7% of farms utilizing it in 2023.
Conclusion
Despite challenges in rising costs, single suckling farms in Ireland showed resilience in 2023. Production system choice, soil quality, and stocking rates remain key differentiators in farm profitability. Continued progress towards meeting environmental targets will be crucial in ensuring sustainable practices within the sector.