Sheep Outlook: fertiliser and concentrate costs to dent sheep margins
Sheep prices are forecast to decline by 5% but it is a 120% increase in fertiliser prices and a 6% increase in concentrate costs which will have the most profound effect on 2022 margins.
Fertiliser costs are expected to increase by 120% and while this is expected to lead to a 20% decline in usage it will still increase pasture and forage costs by 70%. \ Philip Doyle
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Teagasc is predicting a less positive outlook for the sheep sector in 2022, with margins expected to fall by about 15% when compared to 2021 levels.
Global sheep prices are forecast to ease by 5% on the record levels experienced in 2021 but still remain relatively high.
The reduction forecast is stemming from increased fertiliser and concentrate costs.
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The increased fertiliser costs are expected to underpin a 20% decline in fertiliser use but even with this lower level of usage, fertiliser costs are set to increase by 120%, resulting in pasture and forage costs rising by 70%.
Concentrate feed use is forecast to remain stable but costs are expected to be 6% higher.
The average gross margin for lowland producers is forecast to be in the region of €634/ha, compared to an estimated €748/ha in 2021, while the net margin is predicted at €88/ha.
The report focuses on lowland sheep production and does not include specific predictions for hill sheep.
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Teagasc is predicting a less positive outlook for the sheep sector in 2022, with margins expected to fall by about 15% when compared to 2021 levels.
Global sheep prices are forecast to ease by 5% on the record levels experienced in 2021 but still remain relatively high.
The reduction forecast is stemming from increased fertiliser and concentrate costs.
The increased fertiliser costs are expected to underpin a 20% decline in fertiliser use but even with this lower level of usage, fertiliser costs are set to increase by 120%, resulting in pasture and forage costs rising by 70%.
Concentrate feed use is forecast to remain stable but costs are expected to be 6% higher.
The average gross margin for lowland producers is forecast to be in the region of €634/ha, compared to an estimated €748/ha in 2021, while the net margin is predicted at €88/ha.
The report focuses on lowland sheep production and does not include specific predictions for hill sheep.
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