A strong recovery in farm milk prices in 2017, and a subsequent increase in the volume produced, means the average dairy farm income reported was €86,115. The proportion earning less than €30,000 was just 8%, compared to 32% in 2016.
Increased farm size
The average-sized dairy farm in 2017 was 56ha, with an income of €1,530/ha, which is up from €928/ha in 2016.
Average herd size increased from 72 to 75 cows.
Seventy per cent of dairy farms reported a farm income of more than €50,000 in 2017, with 29% of these earning more than €100,000.
Investment
On-farm investment was highest on dairy farms, at an average of €25,118. This is up 53% on 2016 levels. Overall, dairy farms accounted for 50% of the total farm investment in 2017.
Despite this rise in investment, a 2% decline was seen in borrowings in 2017.
Figures show that 60% of dairy farmers have borrowings in 2017 and of that 60% the average debt figure is €100,076.
However, their debt-to-income ratio is lowest at 1.05 compared to the other sectors.
Direct payments
Those regions where dairying is more prevalent are generally more profitable and have a lower reliance on direct payments.
Increased milk price, strong market demands and increased output have shown a gross output increase of 25%.
Direct payments account for 23% of the dairy farmer’s income at €19,536.
Labour
The tough spring and increased herd size had been reflected by the significant increase in hired labour costs, which was up 25% compared with 2016.
The amount of unpaid labour supplied was highest on dairy farms at 1.4 labour units per farm.
Output per hectare
Gross output per hectare increased by 37% compared to 2016. As a result of the increased milk produced, costs also rose, with a 6% increase in direct costs per hectare.
Direct costs increased by 6% across the dairy industry.
Concentrate costs increased by 11% and bulky feed was up 12%. Fertiliser costs fell 1% while machinery and livestock/veterinary costs rose 6% and 8% respectively.
Region divide
Farm income was significantly higher at €1,650/ha for the eastern/midland region and €1,623/ha in the south, with the north/western region considerably lower at €1,228.
As a result of the improved milk price, national production increased by 9.1% in 2017 (CSO), with 83% of dairy farmers recording an increase in output in 2017.