The east and midlands had the highest family farm income (FFI) for dairy in 2022, with an average return of €2,508/ha.
This is based on data from the Teagasc national farm survey (NFS), with comparative figures for the south, north and west at €2,355 and €2,133 respectively.
There were 15,319 dairy farms represented in the NFS in 2022, with an average FFI of €148,598 – a 50% increase year-on-year.
This is based on the average dairy farm, with a herd size of 93 cows.
The increase in dairy FFI was driven by a sharp rise in milk price to 60c/L in 2022.
Overall, Irish milk production increased slightly (+0.8%) in 2022, with stronger growth evident in the second-half of the year.
Dairy
Of the 15,319 dairy farms represented within the NFS, the vast majority (72%) are located in the south, which would be considered a traditional dairy area.
The remainder are evenly spread across the other two regions, with 14% located in the north and west, and 14% in the east and midlands, where notable dairy expansion has been occurring since the abolition of the EU milk quota in 2015.
Based on the data collected, dairy farms in the east and midlands region are larger, both in terms of land area and herd size.
Dairy farms located in the south are closer to the average in terms of these metrics.
Costs
According to Teagasc, the FFI adjusted for the unpaid (family) labour results, in an average dairy FFI in the south of €165,838, €138,747 in the east and midlands and €80,617 in the north and west.
North/West East/Midlands South UAA (ha) 55 78 65 Herd size 75 120 90 Farm debt (€) 74,996 166,634 70,256 Investment (€) 47,792 70,619 41,898 FFI (€) 115,400 187,165 150,173 FFI (€)/unpaid labour unit 80,617 140,123 112,663
Looking at the cost of production in 2022, the average FFI/cow in 2022 was highest in the south with the reported figure of €1,665, with the comparative figures in the east and midlands €1,557 and €1,532 in the north and west.
Direct costs/cow were highest in the north and west at €1,611 and lowest in the south at €1,457.
North/West East/Midlands South Direct costs (€/cow) 1,611 1,580 1,457 Overhead costs (€/cow) 1,102 1,156 1,001 Gross Margin (€/ha) 3,620 4,259 3,774 FFI (€/ha) 2,133 2,508 2,355 FFI (€/cow) 1,532 1,557 1,665
The difference in farm structures are reflected in the hired labour cost component across regions, with expenditure on hired labour generally higher in the east and midlands region.
Farm-related debt is also substantially higher in the east and midlands region compared to the south, the north and the west, on average.
Concentrate feed use was on average, 1,519kg/cow in the north and west in 2022, compared to 1,390kg/cow and 1,124kg/cow in the east and midlands and south respectively.