In 2017, suckler farms saw a 5% increase in gross output as prices for younger stock improved while the year progressed. Despite this, average incomes rose by just 1% to €12,680 due to increased costs.
Although the actual price of fertiliser and feed was reduced, higher volumes of usage and other rising overhead costs resulted in a 7% increase in total production costs.
This left the average gross margin per hectare at €803, a third of which was made up by direct payments.
The distribution of incomes makes for stark reading. Half of all farms were earning an income of less than €10,000. Only 2% of suckler farms had an income greater than €50,000 in comparison to the dairy industry where 70% of farms fell into this bracket.
Looking at a regional breakdown of suckler farms, there were clear divides. The eastern/midland region had the highest average income of €18,136, nearly twice that of the northern/western region. This a reflection of the larger average farm size and livestock numbers in the east and the higher costs in the west.
Fattening
The other systems of cattle farming are dominated by cattle fattening. These farms saw a 1% reduction in income to €16,651. The industry saw much price volatility across all categories, with higher prices for steers and young bulls but a reduced heifer price.
With 70% of all incomes below €20,000, the cattle finishing sector had the highest number of owners in off-farm employment. Compared to suckler and sheep farmers, where one-third work off-farm, 41% of cattle finishers had another job.