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.