Dairy

The average dairy farm income in 2024 is expected to be €86,000, a 45% lift on what it is expected to be in 2023.

Despite Teagasc describing the outlook for the global dairy market as somewhat uncertain for 2024, on average, Irish milk prices are projected to improve by about 10% compared to 2023.

An average milk price of almost 46c/l, excluding VAT and including actual constituents, is forecast for the coming year, according to Teagasc.

Despite some input cost reductions, across fertiliser and energy in particular, production expenditure will remain high with a net margin of 12.4c/l forecast for 2024.

Meanwhile, Teagasc has said that against this backdrop, Irish milk production is forecast to remain relatively stable in 2024.

Tillage

Factoring in a reduction in production costs in 2024 for the tillage sector, the average tillage income is forecast to increase by over 60% to €50,000.

Key inputs such as fertiliser, seed and fuel are expected to decrease, while fuel-related costs are expected to decrease in 2024, by about 9% on tillage farms.

Current (November 2023) futures markets indicate that 2024 harvest prices will be slightly higher than those that prevailed at harvest 2023, by over 10%.

This upward movement in prices, Teagasc said, can be explained by an expected reversion to trend yields in the EU for 2024 and a forecast for a lower-ending stock position after the 2024 harvest.

Sheep

The outlook for Irish lamb prices for 2023 is positive, according to Teagasc with an increase in sheep farmer income of 8% to €18,300 expected.

Continued high EU prices and tight EU domestic supply are expected to continue into next year and global sheepmeat prices are forecast to remain high.

Export opportunities for Irish sheepmeat will also continue to support Irish prices in 2024. With lower costs of production continuing into 2024 for the sheep sector, and a modestly positive lamb price outlook, gross margins for mid-season lowland lamb enterprises in 2024 are expected to increase by 9%.

The average gross margin per hectare earned by Irish mid-season lowland lamb enterprises is forecast to increase by €982 this coming year, according to Teagasc.

Beef

Suckler farms are expected to see average incomes of €11,500 in 2024, which is up 12% on 2023, while cattle finishing systems are expected to earn an extra 8% on 2023 at €20,100.

Cattle prices are forecast to increase marginally in 2024, according to the outlook.

The forecast is for a 3% increase in both finished cattle prices and young cattle prices in 2024 relative to 2023, while production costs are also expected to ease slightly.

In terms of gross margin per hectare, the average gross margin on cattle finishing farms is forecast to increase by 7% to €779/ha in 2024.

Meanwhile, the average gross margin on suckler enterprises is forecast to increase by 8% to €719/ha in 2024.