Dairy enterprise review and outlook
Based on data from Teagasc’s National Farm Survey unit, 2021 was a good year for dairying. George Ramsbottom, Dairy Specialist has the breakdown on the figures, and watch back on the Dairy Review and Outlook with Teagasc Researcher Emma Dillon, from Outlook 2022 - Economic Prospects for Agriculture
The average dairy farm income is estimated at €94,000, a 28% increase on the 2020 average. This increase was underpinned by a number of factors including generally good grass growing conditions, increased milk yield per cow and an increase in the price paid for milk.
However some increases in production costs were also observed including feed and fertiliser costs which increased by 16% and 10% respectively.
In 2020 the ‘typical Irish dairy farm’ has a herd size, a stocking rate and an average farm size of 83 cows, 2.05 LU/ha and 60 ha respectively.
Assuming that normal weather conditions prevail in 2022, forecasts for the dairy sector indicate a decline in average farm income to approximately €80,000 despite an expected milk price of 40.6 c/L for the year. This decline is driven by a 13% increase in production costs. Further price rises of 6% and 120% are forecast for feed and fertiliser. A forecasted decline in the quantity of fertiliser used will be partly balanced for by an increase in the quantity of concentrate fed in the coming year.
Watch back on the Dairy Review and Outlook with Teagasc Researcher Emma Dillon, below, as part of Outlook 2022 - Economic Prospects for Agriculture
Dairy Review and Outlook (PDF)
Find out more about the Teagasc National Farm Survey here.
The Teagasc Dairy Specialists issue an article on a topic of interest to dairy farmers every Monday here on Teagasc Daily. Find more on Teagasc Dairy here