Irish milk price rise offsets steep production costs - Teagasc
2022 saw a 32% increase in production costs
16 June 2023
2 minute read
By: The preliminary results of Ireland’s National Farm Survey (NFS) for 2022, which are representative of almost 85,806 farms across the country, were published earlier this week. Teagasc compiled some of the data in a recent report.
According to the survey 15,319 dairy farms were represented in the NFS in 2022, with an average family farm income of €150,884, a 53% increase year-on-year. The increase in family farm income was driven by a sharp rise in the milk price (to 60c/L actual fat and protein), which more than offset the steep increase in production costs, due to higher prices for feed, fertiliser and fuel in particular.
Gross output in 2022 typically increased by 39% relative to 2021. On average, there was a 32% increase in total production costs on dairy farms in 2022 compared to the previous year. Direct costs increased by 35% in 2022, with higher volumes of feed use and higher feed and fertiliser prices.
On an average dairy farm, with a herd size of 93 cows, purchased concentrate expenditure totalled €63,564 in 2022, a 39% increase relative to 2021. Feed volumes averaged 1,210kg per dairy cow in 2022 and have generally been trending upwards since the milk quota was abolished in 2015.
In 2022, in periods where grass availability may have been limited, additional feed may have been used in place of grass to maintain milk yields, particularly given the high milk price available. Feed use per cow on individual farms may differ considerably from the average level due to specific factors, such as location, land type and stocking rate.
In 2022, approximately 41% of dairy farms belonged to the 50-100ha size category, with a further 27% in the 30-50ha bracket. Smaller farms represented 10% of the dairy farm population, with the remaining 22% sized above 100ha.
