Last year was a positive one for beef farms, with higher sale prices delivering higher margins on most farms.

Prices for finished cattle increased by 12% in 2021.

Weanling prices increased by 8%, while prices of store cattle increased by 9% relative to the 2020 level.

The average gross margin on single suckling enterprises increased by 4% in 2021.

The average gross margin on cattle finishing enterprises increased by 9%.

Net margins increased for most cattle farms with a cattle finishing enterprise in 2021. Net margins remained unchanged on other cattle farms due to a rise in input prices and lower direct payments.

The massive gulf between average family incomes on dairy farms compared to suckler farms widened in 2021, with dairy farms now having an income over 10 times that of an average suckler farm.

Rising input costs such as fertiliser, feed and fuel are a real concern going into 2022. As a result, the average gross margin on single suckling farms is forecast to decrease by 22% in 2022.