An easing of diesel and fertiliser costs are expected to be cancelled out by higher fertiliser bills. \ Donal O'Leary
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The net margin that the average dairy farmer is facing into next year, before factoring in a cost for farmer and family labour, is expected to plummet to 11.5c/l, according to Teagasc’s recently published outlook for 2026.
The outlook forecasts that farmers will receive a milk price of 42.4c/l including VAT and at actual constituents averaged across next year.
The equivalent for 2025 had been 53c/l, which allowed a corresponding margin without owned labour deductions of 21.3c/l; 2024’s net margin had averaged 13.3c/l.
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The outlook report stated that it will be the “glut of dairy products” currently in international markets that will dictate milk prices into 2026, including through peak milk months.
While margin pressures from inputs are expected to ease for green diesel, expected to reduce in cost by 12% and feed by 1%, higher fertiliser costs will cancel out this easing in overall input costs.
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The net margin that the average dairy farmer is facing into next year, before factoring in a cost for farmer and family labour, is expected to plummet to 11.5c/l, according to Teagasc’s recently published outlook for 2026.
The outlook forecasts that farmers will receive a milk price of 42.4c/l including VAT and at actual constituents averaged across next year.
The equivalent for 2025 had been 53c/l, which allowed a corresponding margin without owned labour deductions of 21.3c/l; 2024’s net margin had averaged 13.3c/l.
The outlook report stated that it will be the “glut of dairy products” currently in international markets that will dictate milk prices into 2026, including through peak milk months.
While margin pressures from inputs are expected to ease for green diesel, expected to reduce in cost by 12% and feed by 1%, higher fertiliser costs will cancel out this easing in overall input costs.
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