Top dairy beef farms in 2023 earned net margin of €458/ha - Teagasc

New Teagasc data has found that the top dairy beef enterprises earned a net margin of €458/ha in 2023.

This is the first time Teagasc has published a dairy beef fact sheet, providing insights into the financial and technical performance of dairy beef enterprises on cattle farms across Ireland.

The fact sheet shows that in 2023, the average enterprise achieved a gross margin of €884/ha and an average net margin of €162/ha.

In 2023, the top one-third performing enterprises achieved a gross margin of €1,496 and a net margin of €649/ha.

The data behind the fact sheet came from farms participating in the Teagasc National Farm Survey (NFS).

Teagasc has highlighted how the dairy beef system is an increasingly significant component of Irish agriculture. The growing importance of this system is driven by the increase in the number of calves from the dairy herd, and a simultaneous decline in the number of calves from the beef herd.

Commenting on the launch of the dairy beef fact sheet, Teagasc economist, Dr Jason Loughrey, said: “The fact sheet provides details on the output value, direct costs, and fixed costs associated with dairy beef enterprises in Ireland. By including both the gross and net margins, the fact sheet provides a clear picture of the economic performance of this enterprise.”

Analysis

To provide a more detailed understanding of the dairy beef system's performance, the analysis contains a classification of farms into three groups based on their gross margins: top, middle, and bottom performers. This segmentation allows for a comparative view of financial and technical outcomes across the farms operating this system.

Teagasc has said that likely future developments in the dairy beef system in Ireland suggests scope for improved performance. The increasing use of sexed semen in the dairy sector is expected to improve the beef merit of calves coming from the dairy herd. Tools such as the Commercial Beef Value (CBV) and the Dairy Beef Index (DBI) will support better breeding decisions.

Additionally, it said that the uncertain future of live calf exports from Ireland to continental Europe underscores the need for a robust domestic dairy beef system, with improvements in the quality of calves supporting this development.

Welcoming the publication of the fact sheet, Teagasc director, Professor Frank O’Mara said that the fact sheet is an essential tool for understanding and optimising the dairy beef production system, ensuring its sustainable growth and profitability in the future.

Fact sheets, based on NFS data, for dairy, sheep, cereals and cattle systems are also included in the release and serve as an important economic and technical performance indicator for the sector.

The Teagasc enterprise fact sheets for 2023 can be viewed here.