COVID-19 could hit farm incomes by between €600m and €1bn. An analysis carried out by UCD Professor of Agriculture and Food Economics Michael Wallace for the Irish Farmers Journal shows that income on farms could fall by €570m or €990m, depending on how prices move.
COVID-19 could hit farm incomes by between €600m and €1bn.
An analysis carried out by UCD Professor of Agriculture and Food Economics Michael Wallace for the Irish Farmers Journal shows that income on farms could fall by €570m or €990m, depending on how prices move.
Beef prices to farmers have fallen by up to 17%, while dairy commodity prices have fallen by as much as 21% since Europe went into lockdown.
An average 23-cow suckler farmer would lose €2,300 or 26% of their income
Under Prof Wallace’s moderate forecast, in which prices would remain similar to current levels, the average 78-cow dairy farmer would lose €24,000, or 37% of their income for the year.
An average 23-cow suckler farmer would lose €2,300 or 26% of their income, while beef finishers would lose €3,000 each, or 19% of their annual income.
The danger for farmers is that the recovery from the coronavirus lockdown will be slow and lingering.
There are early signs that as some countries emerge from lockdown, demand for beef and dairy products is starting to recover
Such a scenario would see the impact on farm incomes rise to €1bn.
However, there are early signs that as some countries emerge from lockdown, demand for beef and dairy products is starting to recover.
Beef prices rose by 10c/kg to 20c/kg this week. European dairy prices also rose, while Chinese activity saw the GDT auction results steadied.
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