Boost for farming families with hike in cattle prices as milk quotas come to end
Published 24/05/2016 | 11:09
A SURGE in cattle prices and a rise in dairy production as the milk quotas came to an end helped family farm incomes record a 6pc rise last year.
However, the Teagasc National Farm Survey puts the average income figures for the farming sector at €26,526 below the average industrial wage.
As farmers cope with plunging milk, grain and pigmeat prices this spring, Teagasc economist Dr Thia Hennessy pointed out the milk price was down almost 20pc on farms last year but income on dairy farms fell by just 4pc to an average of €63,020.
The farm body had expected income on dairy farms to fall further but it was staved off by a rise in milk production and the price dropping later in the year when the bulk of milk had already been reduced.
"Despite the considerable fall in milk price, increased milk production, combined with higher cattle prices, good weather conditions, reduced input expenditure due to lower fuel and animal feed prices, resulted in a 6pc rise in average farm income," said Dr Hennessy.
After the removal of quotas in April last year, the farm survey shows there was major efficiency gains on dairy farms with strong grass growth last spring and inputs declining.
Almost one in three dairy farmers increased their milk production by 20pc or more, with just one-fifth of farms reducing production.
"The lower milk price in 2015 meant that dairy farmers had to increase their milk output by at least 20pc to just maintain their income at 2014 levels," said Dr Hennessy.