Archive for Irish dairy producers

45% of South Ireland Dairy Farmers Face Winter Feed Shortage: Teagasc Survey Reveals Urgent Need for Action

Find out why 45% of South Ireland’s dairy farmers struggle with winter feed. Learn ways to secure your feed and manage stock better. Are you ready?

Summary:

As we approach the harsher months, a troubling report highlights that nearly 45% of dairy farmers in the south of Ireland find themselves without sufficient winter feed. According to the latest Teagasc fodder survey, this alarming statistic reflects a more significant national issue, with only 62% of farms having secured their winter feed supply, including a one-month reserve, and 18% facing shortfalls exceeding 10% of their feed requirements. Experts urge immediate action, recommending farmers increase their forage or reduce their livestock numbers to mitigate the risks. Aisling Claffey, a ruminant nutrition specialist with Teagasc, stresses, This shortage exposes the vulnerabilities within our agricultural system, urging farmers to rethink their strategies and prepare more effectively. Regional differences in feed supply further emphasize the crisis, with only 55% of dairy farms in the south having enough feed compared to 74% in the northwest, highlighting the need for strategic planning and specialized measures.

Key Takeaways:

  • Nearly 45% of dairy farmers in southern Ireland lack sufficient winter feed, highlighting a regional disparity.
  • A national survey indicates that only 62% of farms nationwide have secured winter feed, including a one-month reserve.
  • Farmers are encouraged to complete a fodder budget and take early action to address feed deficits.
  • Feed stock improvements have been noted, but some farms face ongoing challenges with lower-than-target grass covers.
  • Approximately 30% of farmers expect cash flow issues over the winter due to additional feed purchases.
  • Regional disparities show the northwest with the highest feed levels, while the midlands northeast faces significant deficits.

Winter is approaching, and the cold weather might mean doom for almost half of the dairy producers in southern Ireland. According to the most recent Teagasc fodder study, 45% of these farmers do not have enough winter feed to keep their cows, indicating a growing issue with far-reaching consequences for the dairy sector. The poll collected data from over 650 farms throughout the country and found that just 62% of Irish farms had obtained the required winter feed, including a one-month reserve. In contrast, 18% had shortfalls exceeding 10% of their feed requirements. “We encourage all farmers to complete a fodder budget for their farm if they have not already done so; take early and appropriate action to secure fodder and reduce demand,” says Aisling Claffey, Teagasc’s ruminant nutrition expert. This poll is an important barometer for the dairy farming community, providing light on readiness levels and flagging areas needing work. Proactive actions are required to reduce the possibility of feed shortages, which, if not handled, might negatively influence animal health and farm profitability and should be a top priority for every farmer.

Winter Feed Crisis Looms for Southern Ireland’s Dairy Farmers 

The 2024 Teagasc fodder study offers a thorough overview of the winter feed shortage affecting dairy producers in southern Ireland. The findings show a substantial deficiency, with just 55% of area dairy farms having enough feed reserves. This sharply contrasts the national average, where 62% of farms have successfully acquired winter feed, including a one-month reserve. Furthermore, 18% of farms have shortfalls surpassing 10% of their feed needs, raising worries about their viability during winter.

The 2024 Teagasc fodder survey results show an overall deficiency in winter feed and regional differences in feed supply. At the same time, the south area is severely strained, with just 55% of dairy farms having enough feed; dry stock producers in the northwest fare better, with 74% having enough feed supplies. This discrepancy emphasizes the need for specialized measures to alleviate feed shortages. In the midlands northeast, for example, just 55% of dairy farms have enough feed, putting them in a problematic situation as winter approaches.

These numbers underscore the critical need for strategic planning to address the food crisis. By analyzing their conditions and taking necessary actions, such as completing fodder budgets and acquiring more forage, dairy producers can mitigate the risks posed by these deficiencies. This strategic approach empowers them to face the cold months confidently and quickly.

Understanding the Root Causes of the Feed Shortage: A Perfect Storm 

To comprehend the feed scarcity situation, it is critical to investigate the contextual factors contributing to this frightening condition. Weather patterns have had a significant impact. Unpredictable weather in recent years, ranging from arid summers to protracted rainy spells, has had a considerable influence on grass growth and, as a result, silage output. For example, the summer drought of 2022 left many fields scorched, severely lowering local fodder yields and forcing farmers to scramble to make up the difference as winter approached. This awareness of the underlying issues might help farmers make educated choices and take preventive remedies.

Economic factors increase the situation. The post-pandemic world has witnessed skyrocketing costs for crucial agricultural inputs such as fertilizers and gasoline, putting pressure on dairy producers’ narrow margins. Inflationary pressures on these inputs have made producing or buying feed more expensive. According to a Teagasc study, increased feed prices have pushed many farmers to reduce their purchases, exacerbating the shortfall.

Changes in agricultural policy also share some of the responsibility. Although good in the long run, recent legislative adjustments aimed at environmental sustainability have reduced methods that previously increased feed supply. For example, nitrogen use laws have reduced the inputs farmers may apply to their fields, reducing agricultural yields. Furthermore, the rules fueling the drive for organic farming are still in their early stages of efficacy and scalability, putting conventional feed production systems under pressure.

Weather inconsistencies, economic challenges, and changing agricultural regulations contribute to the present feed shortfall, creating a perfect storm that requires immediate and deliberate action.

Farmers Take Proactive Steps Amid Feed Shortage Fears 

The survey data reveals that farmers are not passively waiting for the feed crisis to strike. About half of the respondents have taken proactive steps to secure more feed, demonstrating their unwavering commitment to their livestock’s well-being throughout the winter. This proactive approach showcases the farmers’ resilience and resourcefulness in the face of adversity.

Furthermore, 60% of farmers want to cut stock levels to minimize feed consumption. This intelligent decision allows them to match their available feed supplies with the nutritional requirements of their surviving animals.

Aisling Claffey, a Teagasc ruminant nutrition expert, underscores the importance of early action. “We encourage all farmers to complete a fodder budget for their farm if they have not already done so; take early and appropriate action to secure fodder and reduce demand,” Claffey advises. This proactive approach, which includes verifying silage quality and selecting the highest-quality silage for newly calved cows and young growing animals, ensures that farmers are well-prepared for the challenges ahead.

Farmers must use this knowledge wisely to manage feed scarcity efficiently. By getting more fodder and judiciously lowering inventory, they’re better positioned to weather the storm.

If you’re among the 45% of Dairy Farmers in Southern Ireland Facing a Winter Feed Shortage, Take Strategic Action Now. 

Teagasc professionals have provided several advice on managing these problematic conditions adequately.

First and foremost, a detailed fodder budget must be completed. This is more than simply a spreadsheet exercise; it is a lifeline. Calculating your farm’s unique feed demands allows you to spot shortages early and avoid a possible disaster. Teagasc’s ruminant nutrition expert, Aisling Claffey, emphasizes, “We encourage all farmers to complete a fodder budget for their farm if they have not already done so; take early and appropriate action to secure fodder and reduce demand.”

Testing the quality of your hay should be the next step. Not all fodder is created equally. Better-quality silage must be offered to newly calved cows and young developing animals. At the same time, lower-grade fodder may be provided to dry cows. This customized strategy guarantees that your most essential cattle get the nourishment they need to be productive. She cautions, “It is important to test silage quality and prioritize the best-quality silage for freshly calved cows and young growing stock.”

Evaluate your existing feedstocks and possible acquisition possibilities to get practical suggestions. If you want to purchase more fodder, do it early. Prices and availability often deteriorate as the winter continues. Alternative forages and vitamins should also be examined to help extend current resources.

Teagasc’s head of consulting services, Tom Curran, provides valuable insight: “Farmers should be cautious of winter feed stockpiles in the coming weeks and months. If action is taken quickly, the choices for resolving shortages will be more affordable and numerous.

Also, check your stocking rates. Lowering stock levels may reduce future feed demand and help present supplies last longer. Finally, speak with a Teagasc adviser about tailoring these broad ideas to your farm’s requirements and circumstances.

Your quick efforts may minimize serious consequences later. You can get through this phase by budgeting, testing, and prioritizing while keeping your cattle healthy and productive.

Regional Disparities Highlight Stark Contrasts in Winter Feed Preparedness Across Ireland

When we look at geographical differences, we can observe that certain places are dealing with more severe feed shortages than others. The southern portion of Ireland is especially heavily struck, with just 55% of dairy farms having enough feed. Dry stock farms in this area perform marginally better, with 59% obtaining enough feed.

The situation in the Midlands Northeast is as worrying. Here, just 55% of dairy producers have enough winter feed. The rate for dry stock producers is even more frightening, with 10% experiencing substantial feed shortfalls.

On the plus side, dry stock producers in the northwest area are far better, with 74% reporting enough winter feed, while 64% of dairy farms in the southeast report sufficient feed availability.

These figures show a striking disparity in Ireland’s rural environment. While some areas are well-prepared for the winter season, others confront significant obstacles that need fast and deliberate action.

The Financial Domino Effect of Winter Feed Shortages 

The present feed scarcity has significant financial ramifications. According to the poll, almost 30% of respondents expect cashflow challenges throughout winter due to the need to purchase more feed. The immediate financial pressure is just the tip of the iceberg. If these cashflow issues are not appropriately addressed, they might escalate into more serious economic concerns. Increasing feed costs may affect profitability and threaten farm sustainability. Early intervention is critical. Farmers may reduce some of these risks by adopting proactive actions such as creating a fodder budget and sourcing sufficient feed well ahead of time. Strategic planning and prompt action assist in managing short-term cash flow while also protecting the farm’s financial health in the long run.

The Bottom Line

Over half of southern Ireland’s dairy producers are experiencing significant winter feed shortages. While some have started to get extra fodder or reduce stockpiles, the need for fast and strategic action remains urgent. Regional inequalities demonstrate that not all locations are equally equipped, emphasizing the need for specific interventions. Financial restrictions owing to the need to purchase more feed exacerbate the urgency, affecting cash flow for many.

If you are one of the impacted farmers, act quickly. Completing a fodder budget for your farm and taking early steps to ensure enough winter feed may significantly affect you. Assess your feed quality, emphasize high-quality hay, and explore alternate solutions. The steps you take now are essential to surviving this difficult moment and preserving the viability of your activities.

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Low Confidence Freezes Irish Dairy Farmers’ Investments

Why are Irish dairy farmers stopping investments? What does this mean for the future of dairy farming in Ireland? Find out here.

Summary: Irish dairy farmers face a tough climate, with low confidence affecting dairy sector investment. Weather events and market conditions contribute to hesitancy. Social media reactions, like those from Lee in Darlington, highlight consumer concerns over dairy consumption. Despite these challenges, family-driven farms demonstrate resilience, balancing tradition with modern demands. Low market confidence and volatility have led to a stall in investment. The unstable economic situation, including fluctuating milk prices and rising costs, has made farmers hesitant to invest. A poll by the Irish Producers Journal found over 60% of dairy producers have postponed or canceled investments due to uncertainty. Farmers in County Cork are particularly worried about long-term impacts. Without new investments, farms may struggle to maintain production and efficiency, decreasing milk output and affecting the supply chain. Lack of investment in sustainable techniques may hinder environmental progress in dairy production. Experts call for immediate government action and financial incentives to restore confidence and encourage investment.

  • Irish dairy farmers are currently experiencing low confidence in the dairy sector, halting key investments.
  • Weather events and market conditions significantly contribute to this investment hesitancy.
  • Social media backlash from consumers is impacting dairy consumption and farmer sentiment.
  • Despite the challenges, many family-driven farms are showing resilience due to their balance of tradition with modern demands.
  • Over 60% of dairy producers have postponed or canceled their investments due to economic uncertainties, as per a poll by the Irish Producers Journal.
  • Farmers in County Cork are particularly worried about the long-term impacts of stalled investments on production and efficiency.
  • Lack of investment in sustainable farming techniques could hinder progress in environmentally-friendly dairy production.
  • Experts are calling for immediate government action and financial incentives to restore investment confidence.

Irish dairy producers are struggling as poor market confidence has slowed investment. This troubling trend severely influences the dairy business, leaving many farmers concerned about the future. The situation deteriorated in 2023 due to economic difficulties and market volatility, making it difficult for farmers to commit to new company investments.

The primary reason for this pause in investments is the unstable economic situation, which includes changing milk prices and rising feed and equipment expenses. Dairy producers fail to forecast future revenues, prompting a more conservative expenditure strategy. According to a recent poll conducted by the Irish Producers Journal, more than 60% of dairy producers have postponed or canceled planned investments due to this uncertainty.

A dairy farmer from County Cork shared his concerns: “We used to invest in new technology and equipment regularly to be competitive, but it’s now too hazardous. The market’s instability has rendered it unaffordable. Many in the sector are concerned about the long-term effects of discontinuing investing.

Tom O’Leary, a dairy farmer in County Cork, highlighted his concerns: “We used to update our technology and equipment every few years to stay up, but it’s now too hazardous. “The market’s uncertainty is simply too high.” Farmers are particularly concerned about the long-term consequences of discontinuing investments.

The scope of this situation is vast. Without new investments, farms may struggle to maintain production and efficiency levels. This might decrease milk output, impacting the whole supply chain, from processors to merchants. Furthermore, a lack of investment in sustainable techniques may hinder attempts to reduce the environmental impact of dairy production.

Experts are advocating immediate action to address this issue. They believe government assistance and financial incentives might restore trust and encourage farmers to invest in their enterprises. ‘A concerted effort is needed to stabilize the market and provide farmers with the tools they need to flourish,’ said Dr. John Murphy, an agricultural economist from University College Dublin.

To summarize, the present situation in the Irish dairy business requires a quick response. The stop in farmer investments reflects deeper economic issues that must be addressed for the dairy industry to survive. As the sector confronts these problematic circumstances, coordination among stakeholders is critical in developing ways to assist farmers and ensure the future of Irish dairy farming.

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Irish Dairy Farmer Income Plummets by 69% in 2023

Explore the reasons behind the drastic 69% drop in dairy family farm incomes in 2023. With rising costs and declining milk prices taking a heavy toll, how are farmers navigating these tough challenges?

Imagine losing roughly three-quarters of your salary in one year. This is the hard reality for Irish dairy producers in 2023 when Family Farm Income (FFI) drops by 69%. The average FFI for the 15,319 dairy farms included in the National Farm Survey (NFS) decreased to €49,432. The primary reason was a dramatic drop in milk costs, which fell to barely 43 cents per liter. Unlike in 2022, when high prices buffered growing costs, high expenditures in 2023 outweighed lower milk profits. Energy, feed, and contractor expenses skyrocketed, offset marginally by decreasing fertilizer prices. Adverse weather and high operating expenditures contributed to a 4% decrease in milk output. Dairy producers must grasp these aspects to manage economic problems and support their livelihoods effectively.

YearAverage FFI (€)Milk Price (€/L)Average Herd SizeMilk Production Per Hectare (L)Direct Costs Per Cow (€)
2022€159,1030.659512,152€1,540
2023€49,4320.439511,669€1,612

2023: A Year of Economic Turbulence for Irish Dairy Farmers

In 2023, I depicted a bleak picture of the Irish dairy farming industry, as shown by the National Farm Survey (NFS). The study included 15,319 dairy farms throughout the agricultural landscape, offering a comprehensive view of the industry’s overall health. The financial results were harsh, with an average Family Farm Income (FFI) of €49,432, a staggering 69% decrease from the previous year. This sharp year-on-year decline in FFI highlights the increased challenges from lower milk prices and persistently high input costs, reshaping the economic environment for Irish dairy producers.

The Buffer Crumbles: Impact of Plummeting Milk Prices on Irish Dairy Incomes

YearMilk Price (cent per liter)
202135
202250
202343
Source: Teagasc National Farm Survey

The sudden drop in milk prices to 43 cents per liter by 2023 has significantly affected dairy farm earnings. This drop contrasts sharply with the previous year’s record milk prices, which acted as a cushion against rising input costs. In 2022, higher milk prices offered a financial cushion for dairy producers, protecting them from increasing feed, energy, and other input costs. However, when milk prices fell in 2023, this safety net was unexpectedly eliminated, leaving dairy farms facing increased expenditures. This fast fall weakened profit margins, lowering farm family incomes and emphasizing the fragile character of agricultural markets, where price swings may considerably impact financial stability.

A Perfect Storm: High Input Costs and Economic Strain in 2023

Cost Component2022 (€)2023 (€)Year-on-Year Change (%)
Purchased Concentrate Expenditure64,77461,535-5%
Direct Costs14,00514,7055%
Electricity, Car, and Phone10,93012,24312%
Hired Labor8,7609,1254%
Rent of Conacre8,8949,78310%
Other Overhead Costs8,4188,250-2%
Building Depreciation17,26713,814-20%
Machinery Depreciation19,47420,2594%
Machinery Operating Costs13,61712,936-5%

2023 has proved to be a challenging year for Irish dairy producers, as they face continually high input prices. Despite a slight decrease in fertilizer prices, which provided some comfort, the drop was insufficient to balance their total burden. Energy prices rose as global markets responded to geopolitical tensions and supply chain disruptions, affecting everything from milking operations to agricultural equipment. Meanwhile, concentrate feed prices rose as competition for raw resources and demand grew. Contracting costs also increased in 2023, indicating more significant labor and fuel costs that contractors had to pass on to farmers. These increased costs added to the financial burden on dairy farmers already dealing with low milk prices, resulting in substantial economic pressure.

Shifting Currents: Analyzing the 4% Decline in Irish Milk Production in 2023 

YearTotal Milk Production (M. litres)Change (%)
20218,200
20228,500+3.7%
20238,160-4%

In 2023, Irish milk output fell by 4% on average. The reduction was incredibly sharp in the fourth quarter due to high production costs, falling milk prices, and unfavorable meteorological conditions. This colliding trifecta generated a perfect storm for dairy producers. The minor decrease in fertilizer costs could not offset the high input costs caused by persistently high prices for electricity, concentrate feed, and contractual services. Combined with drastically reduced milk prices, the economic sustainability of many dairy enterprises was severely stretched.

Weather factors exacerbated farmers’ output challenges. Weather fluctuation decreased milk production and increased operational unpredictability, making it more difficult for farmers to plan and manage their resources effectively. The combination of these variables resulted in a significant drop in output during the fourth quarter, underscoring the sector’s susceptibility to economic and environmental challenges.

In this environment, actions to stabilize input prices and protect against market volatility may be critical in cushioning the dairy industry from future downturns. Furthermore, establishing techniques to better deal with severe weather patterns will be essential to ensuring Irish dairy producers’ long-term production levels and economic resilience.

Navigating Shifting Financial Currents: Key Farm Expenditure Changes in 2023 

Category2022 (€)2023 (€)Year-on-Year Change (%)
Purchased Concentrate Expenditure64,77361,535-5%
Other Direct Costs13,95714,7055%
Machinery Depreciation19,47020,2594%
Machinery Operating Costs13,62212,936-5%
Car, Electricity, and Phone10,92712,24312%
Hired Labor8,7729,1254%
Rent of Conacre8,8959,78310%
Building Depreciation17,26813,814-20%
Other Overhead Costs8,4188,250-2%
Fuel, Building Maintenance, and Land Improvement5,000 (approx.)4,500 (approx.)-10%

The financial dynamics of 2023 demonstrated significant changes in several agricultural expenses for the typical dairy farm. Notably, concentrate feed cost reached €61,535, representing a 5% drop over the previous year. This led to an average feed amount of 1,207 kg per dairy cow, a slight decrease from 2022.

Other direct expenditures, which include various things necessary to everyday operations, increased by 5% to an average of €14,705. These costs include expenses for vital goods that maintain the farm’s seamless operation despite changeable economic situations.

Overhead expenses showed diverse patterns. While building depreciation fell 20% to €13,814, equipment depreciation increased 4% to €20,259. Despite the rise in depreciation, equipment operating expenses dropped by 5% to €12,936. A significant 12 percent increase in automobile, power, and phone service charges compounded the spending, resulting in an average expense of €12,243. Hired labor costs increased by 4%, reaching €9,125 on average, while conacre rental expenses increased by 10%, to €9,783.

In contrast, certain overhead expenses were reduced. Key examples include a 2% drop in other overhead costs, bringing the average to €8,250, and decreased fuel, building maintenance, and site improvement expenses, ranging from €3,000 to €6,000 on average.

A Staggering Shift: The Decline of Irish Dairy Farm Incomes in 2023

Income Range (€)2022 (%)2023 (%)
<30,00010%39%
30,000 – 50,00011%19%
50,000 – 70,00010%15%
70,000 – 100,00010%12%
>100,00064%15%

The Teagasc National Farm Survey shows that the economic environment for Irish dairy farmers has transformed substantially by 2023. The number of farms reporting an average Family Farm Income (FFI) of less than €30,000 increased significantly, reaching 39%. This compares sharply with 2022, when more farms were in the upper-income groups. Concurrently, the fraction of farms with the most significant revenue dropped from 64% in 2022 to 15% in 2023. The income distribution slump shows dairy producers have substantial financial issues due to low milk prices and high input expenses.

Disparities in Dairy Farm Income: Analyzing Farm Size and Operational Intensity

Farm Size (hectares)Average FFI (€)FFI per Hectare (€)Stocking Rate (LU/ha)Milk Production per Cow (liters)
<3015,0005001.85,000
30-5037,5001,2502.15,300
50-7050,0001,0002.35,400
70-10065,0009502.55,600
>10085,0008502.65,700

Examining farm size and intensity showed a significant difference in average Dairy Farm Family Income (FFI) across farm size classes. This discrepancy is notably noticeable among bigger farm sizes, where FFI varies greatly. Figure 15 shows that smaller farms often face lower revenues, and more giant farms see a more excellent range of financial outcomes.

Smaller farms (usually 30 to 50 hectares) tend to report lower average FFI. This tendency may be explained by restricted economies of scale and more significant relative input costs. On the other hand, farms of 50 to 100 hectares frequently benefit from modest economies of scale, which may help offset certain fixed costs, increasing the average FFI. However, even within this mid-range group, the FFI may vary significantly depending on herd management tactics, input cost control, and market access.

The giant farms with more than 100 hectares show the most significant fluctuation in FFI. These farms have the potential to benefit considerably from economies of scale, but they also face particular problems that might affect profitability. For example, the more significant capital inputs necessary for extended operations and the difficulty of maintaining vast herds may result in substantial financial discrepancies in performance. Some big farms may attain very high FFIs on one end of the spectrum owing to efficient operations and good market circumstances. Others may suffer from high loan payment costs and milk price volatility, resulting in lower-than-expected profits.

Furthermore, the intensity of agricultural methods influences FFI. Higher-intensity operations, defined by higher stocking rates and more intense use of inputs, may increase gross production while increasing costs, especially in difficult economic climates such as 2023. This situation leads to a large variety of FFI results, even on farms of comparable size.

Although more giant dairy farms can attain higher average FFIs, they also have a more comprehensive revenue range. This diversity demonstrates the complex interplay between farm size, management approaches, and economic circumstances in creating financial outcomes.

Regional Disparities in Irish Dairy Farming: Challenges and Opportunities Across East, Midlands, North, West, and South

The variety of dairy farm architecture throughout Ireland’s regions highlights the varied problems and possibilities that farmers confront in various geographical zones. According to the 2023 Teagasc National Farm Survey, the East and Midlands, North and West, and South areas have unique land acreage, herd numbers, and financial performance, reflecting historical patterns and current economic trends.

On average, dairy farms in the East and Midlands region have the most significant land area, covering 77 hectares, and the highest herd numbers, averaging 117 cows. Financially, this area has a more significant average farm debt of €139,878, owing to considerable investments of €47,887 per farm. The FFI (Family Farm Income) for these farms is at €56,124. However, when corrected for unpaid work, it drops dramatically to €35,557 per unpaid labor unit, showing a dependence on family labor and a possible pressure on sustainability.

Meanwhile, the South area, regarded as the traditional dairy heartland, is home to most of Ireland’s dairy farms (72% of the total). The typical dairy farm in this area is 64 hectares in size, with 95 cows on the property. The financial parameters for the South show an average farm debt of €88,606 and an investment level of €45,495. The regional average FFI is €54,327. However, accounting for unpaid work, it climbs to €40,224 per unpaid labor unit, demonstrating a slightly healthier financial structure than the East and Midlands but with underlying stresses.

The North and West regions provide a contrasting image, with lower average farm holdings of 56 hectares and herd numbers of 72 cows. This area also has the lowest agricultural debt, at €67,570, and the most minor investment per farm, at €36,404. As a result, the FFI is much lower, at €28,906, and after accounting for unpaid work, the adjusted FFI drops to €12,722 per unpaid labor unit. These numbers indicate the fragility and financial restrictions of dairy farms in this area and the restricted capability for investments and expansion.

This regional research reveals severe inequalities in the Irish dairy industry, highlighting the need for region-specific policies and support systems to guarantee the profitability and sustainability of dairy farming across Ireland. Such tailored initiatives are critical for addressing farmers’ specific concerns, ranging from high investment needs in the East and Midlands to the financial resilience needed in the North and West.

The Structural Transformation of Irish Dairy Farming: Trends in Milk Production, Herd Size, and Land Use

Significant structural changes have transformed Irish dairy farms, as seen by major patterns in milk output per hectare, average herd size, and land usage. Despite periodic instability caused by lousy weather and shifting milk prices, the average amount of milk produced per acre has steadily increased since 2015. In 2023, milk output per acre fell 4% to 11,669 liters. Concurrently, the average milk output per cow decreased by 5% to 5,461 liters.

The average herd size has grown dramatically, from 64 cows per farm in 2013 to 95 cows by 2023. This rise in herd size corresponds to an increase in total livestock units, indicating that more animals were maintained as replacements.

Regarding land usage, dairy farms’ average utilized agricultural area (UAA) fell marginally, from 65.2 hectares in 2022 to 64.3 hectares in 2023. The average dairy pasture area was also reduced by 3% to 44 hectares. These trends highlight the dynamic character of Irish dairy production and the constant adaptations required to address economic and environmental issues.

The Bottom Line

In 2023, Irish dairy farmers experienced financial insecurity due to a dramatic reduction in milk prices and high production expenses, leading to a 69% loss in farm revenue. National milk output decreased by 4%, particularly in the fourth quarter. Although fertilizer prices were reduced, electricity, feed, and contracting costs increased. Machinery upkeep, labor, and land leasing all saw a rise in cost. Regional inequalities highlight financial issues in the East, Midlands, North, West, and South, with more giant farms seeing unique consequences. Farmers have adapted by changing herd numbers, land usage, and milk output. It is critical to look at other income sources and cost-cutting strategies. Policies that reduce price volatility and give input cost subsidies are required. Irish dairy producers’ perseverance and innovation are critical to ensuring a long-term, profitable future.

Key Takeaways:

  • The average Dairy Family Farm Income (FFI) in 2023 was €49,432, reflecting a significant 69% decrease from the previous year.
  • A sharp decline in milk prices to 43 cents per liter was a primary factor behind the reduced FFI.
  • Despite a decline in fertilizer costs, other input costs such as energy, concentrate feed, and contracting increased, exacerbating financial pressures.
  • Overall, Irish milk production decreased by just over 4% in 2023, with a notable falloff in the final quarter.
  • Gross output on dairy farms typically decreased by 27% relative to 2022 due to lower volume and value of output.
  • Production costs remained high, with only a 1% decrease from the previous year’s high levels.
  • Average feed use per cow showed slight reductions but varied significantly based on specific farm characteristics.
  • Overhead costs saw mixed changes, with some elements like building depreciation decreasing, while others like machinery depreciation and operating costs fluctuated.
  • Regional disparities were evident, with the majority of dairy farms located in the South, which also had different financial and structural characteristics compared to other regions.
  • Significant structural changes in Irish dairy farming included increases in herd sizes and changes in land use and production per hectare over recent years.

Summary:

In 2023, Irish dairy producers experienced a significant economic downturn, with an average Family Farm Income (FFI) dropping by 69% from the previous year. This decline was primarily due to a drop in milk costs, which fell to just 43 cents per liter. The National Farm Survey (NFS) showed a bleak picture of the Irish dairy farming industry, with an average FFI of €49,432, a 69% decrease from the previous year. Irish milk output fell by 4% on average, particularly in the fourth quarter, due to high production costs, falling milk prices, and unfavorable meteorological conditions. Key farm expenditure changes revealed significant changes in agricultural expenses for the typical dairy farm, with concentrate feed cost reaching €61,535, other direct expenditures increasing by 5% to an average of €14,705. Overhead expenses showed diverse patterns, with building depreciation falling 20% to €13,814, equipment depreciation increasing 4% to €20,259. Hired labor costs increased by 4% to €9,125, and conacre rental expenses increased by 10% to €9,783.

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