Income for beef finishers and farmers with cattle (other than suckler and dairy farmers) declined by almost one-fifth in 2023, according to the Teagasc National Farm Survey.
The results of the survey were published today (Tuesday, July 23), making for largely disappointing reading for most sectors, including beef.
There were approximately 33,983 ‘cattle other’ farms (as opposed to cattle rearing, or suckler farms) represented in the survey in 2023, of which beef finishing is the dominant farm type.
These farms had an average family farm income (FFI) of €14,735, a 19% decrease on the 2022 level.
Typically, the average output value per cattle other farm decreased by 5% in 2023
to €66,356, mainly due to a reduction in production volume.
The level of scheme payments on cattle other farms remained stable in 2023, totaling €16,505 on average.
In 2023, total costs remained relatively unchanged on cattle other farms compared to 2022, with a general increase in direct costs and a decrease in overheads. On average, direct production costs increased by 3%, and overhead costs declined by 3%, relative to the previous year.
Expenditure on purchased concentrates was up in 2023 at €10,820 on average, with a decrease in purchased bulky feed.
Costs related to farm contracting remained relatively stable, at €4,456 on average. In terms of spending on fertiliser, there was a 24% decline to €4,603 on average, while there was a 6% increase in nitrogen use per farm.
Expenditure relating to livestock and veterinary increased by 8% to €2,617, on average. Other direct costs were up 14% to €1,989, on average.
In terms of overhead costs, a general reduction in overhead costs on cattle other
farms in 2023 was due mainly to a decline in buildings depreciation which was down 27% year-on-year to €2,794, and reductions across other cost components.
The average size of cattle other farms (in terms of utilised agricultural area, or UAA) in 2023 was 36ha, relatively unchanged compared to 2022. Total livestock units (LU) also remained relatively stable at 48LU (bovine animals account for between 0.4LU and 1LU).
Gross margin per hectare on cattle other farms declined by 8% in 2023 to €1,123. This margin was inclusive of a Pillar 1 Common Agricultural Policy (CAP) payment of €275, a reduction on 2022, on average.
The proportion of cattle other farms reporting an FFI below €5,000 increased to 38%, up 12 percentage points compared to 2022.
The proportion of cattle other farms with an FFI of between €5,000 and €10,000 was marginally down at 14%.
The proportion in the €20,000 to €50,000 income category increased by 3 percentage points to 24% in 2023. There was a 3 percentage point decline in the proportion of cattle other farms earning more than €50,000, at 5% in 2023.
50% of cattle other farm-holders also worked off-farm in 2023.