Developments to date in 2014 are suggestive of another year of mixed fortunes, with milk producers likely to be more content with developments than drystock and tillage producers.

That’s according to Teagasc’s Mid Year Outlook for Irish Agriculture 2014 published today. It says costs of production in 2014 are certainly decreasing due to a combination of lower prices for key inputs, such as feed and fertiliser and lower feed volume requirements now that the effects of the fodder crisis have receded. However, developments in terms of output prices across the systems are more mixed and this is impacting differentially on profitability.

Looking back  on 2013 Teagasc says it is difficult to generalise about the outcome for agricultural incomes as it was a year of mixed fortunes. High costs were a significant concern on all farms, particularly those experiencing increased feed requirements due to unfavourable growing conditions in the first half of the year.

While output prices for milk and meats were high, only dairy farmers managed to come out ahead, as high costs led to a fall in margins in the drystock sector. On the tillage side, high yields were offset by a fall in international and Irish grain prices, leaving producers worse off than in 2012.