Preliminary results show dairy farmers who completed the Teagasc profit monitor suffered an 11% drop in net profit in 2015 when compared with 2014.

The results represent 200 spring-calving herds from across the country. The figures from Teagasc showed the average profit for these 200 herds fell from €99,307 in 2014 to €88,402.

Milk price fell by 20% from an average price of 40.08c/litre in 2014 to 32.03c/litre last year. Herd size increased by 13% to average of 132 cows resulting in higher total farm costs.

ADVERTISEMENT

Fixed costs in 2015 were up 7% from 2014 while variable costs were up 11% in 2015 when compared with the year previous.

With regard to milk sales, the average sales per cow was 5,257 litres in 2015 up 9% in 2014. The average constituents in 2015 were 4.26% fat and 3.64% protein up from 4.21% and 3.55% in 2014.

George Ramsbottom of Teagasc said “efficiency gains in milk production costs resulted in variable and fixed costs per litre declining by 10% and 14% respectively in 2015 (a total decline of almost €60 per cow). This reduction in production costs was due in part to increases in milk yield per cow post-quota and good autumn grass.”

In the Teagasc Profit Monitor the cost of production figure does not, take into account a value on the farmers own labour.