Cost of production to remain elevated for Irish dairy farmers

An analysis completed by Trevor Donnellan and Emma Dillon, Agricultural Economics and Farm Surveys Department, Teagasc, has examined the prospects for dairy farming in Ireland in 2025, according to a news release from the research authority. Based on a 4% forecast increase in Irish milk production in 2025, on account on an improvement in yields and a stable dairy enterprise land base, production costs are forecast to remain at elevated levels. In 2025, the annual average milk price is forecast to improve relative to the 2024 level. On the assumption that normal weather is experienced in 2025, production costs will remain high, but should be down marginally on the 2024 level. It is forecast that total production costs will fall by 4% to reach 35.9 cent per litre. The average net margin per hectare and per litre in 2025 are likely to be up 35% and 29% respectively on the 2024 level at €2,126 per hectare and 17 cent per litre. Dairy farms will continue to operate in a high cost ...