Mid-season lamb and cattle finishing picked up in 2016, others fell
Teagasc has published its annual farm enterprise analysis based on its National Farm Survey (NFS) for 2016.
This analysis details the output, costs of production and margins achieved by dairy, cattle, lamb and various tillage crop enterprises, and therefore indicates the contribution of each type of farm activity to a farm’s overall profitability.
The results reveal a wide range of cost structures and income levels achieved within farm enterprise categories.
In cattle finishing enterprises, there was a growth in the average gross profit margin per hectare of 18%, due to higher production.
Similarly in mid-season lamb, growth in the value of output increased the average gross margin per hectare, by 22% in 2016.
In contrast, on single suckling farms, output value reduced in 2016, and the average gross margin per hectare declined by 7%.
In the case of tillage, lower yields and lower prices led to a decline in the average gross margin, in 2016, despite a fall in costs.
The average gross margin per hectare declined by 11% for spring barley and 19% for winter wheat.
The 2016 NFS dairy analysis shows the average gross margin at 16.02c per litre, down 18% from 2915.
The average net margin was 6.72c per litre.
The Teagasc figures show that the average dairy farmer had total milk production costs of about 22c per litre in 2016. However, less efficient producers have milk production costs which are well above this average, while the most efficient producers have production costs that are below 20c per litre.
Teagasc has also published the Final National Farm Survey Report for 2016, having published preliminary estimates at the end of May.
The report shows the level of profitability, support payments and farm income derived across the farm sector in Ireland.
The results for 2016 show continuing disparity between the levels of income achieved in different farm systems, with dairy farms once again showing the highest average income level and beef systems the lowest average income level.
The average dairy farm income in 2016 was down about €10,000 from the 2015 level, to about €52,000.
Average incomes on drystock farms ranged from €12,500 to €17,000, broadly similar to the 2015 results.
The results also highlight the fall in income on tillage farms in 2016.
The Teagasc NFS Report and the associated NFS Farm Enterprise Factsheets for 2016 are available at www.teagasc.ie/publications
