Dairy farm incomes to average close to €70,000 in 2017
Milk prices to rebound but beef will suffer predict Teagasc
Dairy incomes are set to hit record levels again next year on the back of rebounding milk prices and increased output, Teagasc has predicted.
However, beef prices could fall by over 10pc as spiralling numbers of cattle from the dairy herd look set to undermine the market said Teagasc economist, Kevin Hanrahan ahead of the agency's 2017 farming outlook.
He stressed that the 7pc increase in prime cattle coming on stream for slaughter here next year was not a problem confined to Ireland.
"In 2016 we saw an increase in the amount of cull cow beef coming on the market right across the EU, and it will be the same again now with prime cattle," he said.
"Demand within Europe is not expected to be able to increase fast enough to keep up with supply."
The ag economist also noted that a weak sterling would only exacerbate the fall in prices, even if sterling stays in the current range of under €0.90/£1.
Teagasc believe that weaker prices for beef will also weaken prices for sheepmeat.
Pigs and grain