Wednesday, February 28, 2024
8.9 C
HomeBeefSuckler farmers’ income forecast to fall by 25% in 2022
Catherina Cunnane
Catherina Cunnane
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
Reading Time: 2 minutes

Suckler farmers’ income forecast to fall by 25% in 2022

Suckler farmers’ income forecast to fall by 25% in 2022

Farm Family Income (FFI) on cattle rearing farms (suckler-beef production) is forecast to decrease by 25% in 2022, while this could drop by approximately 16% on ‘cattle other’ farms.

That is according to Teagasc’s revised ‘situation and outlook for Irish agriculture’ report that the state agency published on Wednesday (April 13th, 2022).

Farm income 

The report states that the impact of input expenditure growth is forecast to exceed that of output value growth in 2022.

It adds that overhead costs are forecast to increase by 11%.

It acknowledges that purchased feed and pasture costs dominate the direct costs of beef production.

The report also referred to the war in Ukraine, increases in fertiliser and purchased feed and forage production relative to last year.

Total costs of production on single suckling and cattle finishing enterprises are forecast to rise by 24% and 30%, respectively, in 2022.

The body predicts that the average gross margin on the single suckling enterprise will fall by approximately 13% this year.

Meanwhile, it says that the average gross margin on cattle finishing farms in could be similar to 2021 due to the farms in the top-third of profitability.

Other key points in the report include:
  • Irish prime beef production forecast to increase by 3% compared to 2021;
  • Number of prime finished cattle forecast to increase by 4%;
  • “Small” decline in slaughter weight forecast to partially offset higher factory throughput in 2022;
  • Irish finished cattle prices forecast to increase by 16%;
  • Store cattle prices in 2022 forecast to increase by 12%;
  • Weanling prices forecast to increase by 8%;
  • EU beef supply to be 0.5% lower in 2022, mainly due to a reduction in the size of the cow herd;
  • “Global tightness” in beef availability to “support” exports from Europe.

Other articles on That’s Farming:

- Advertisment -

Most Popular