21 October 2024
Teagasc National Farm Survey 2023 – Dairy Enterprise Factsheet
The Agricultural Economics and Farm Surveys Department at Teagasc has recently released a Dairy Enterprise Factsheet for 2023, providing a detailed analysis of the financial and technical performance of dairy farms as recorded in the 2023 National Farm Survey.
This report highlights key trends in milk prices, production costs, and farm profitability, while also examining variations in farm performance and progress towards sustainability targets.
Analysis of Financial Performance
The report emphasizes a significant decrease in profitability for dairy farmers. The average milk price dropped by 31%, from 60.06 to 42.79 cents per litre (cpl). This steep decline in milk prices, combined with stable production costs, resulted in a 45% reduction in gross margin, from 41.21 cpl in 2022 to 22.60 cpl in 2023.
Variation in Financial Performance
The NFS reveals considerable variation in financial performance among dairy farms, when dividing farms into the top, middle, and bottom one-third based on gross margin per hectare. The best-performing farms had a gross output of 45.77 cpl, while the bottom third achieved only 42.30 cpl. The gap in net margin between the top and bottom performing farms was stark, with the top farms reporting 11.14 cpl and the bottom farms only 1.94 cpl.
Variation in Technical Performance
The technical performance of dairy farms also saw a decline in 2023. Milk production per cow dropped by 5%, from 5,740 litres in 2022 to 5,474 litres in 2023. This decline was mirrored in milk solids per cow, which decreased from 446 kg to 423 kg, and in the average somatic cell count, which rose by 6%. The reduction in technical efficiency was likely influenced by poor grazing conditions and a shorter grazing season, by 12 days.
Teagasc Dairying Road Map Targets for 2027
Teagasc’s Dairying Road Map for 2027 outlines specific targets for dairy farms in areas such as milk production, milk solids, and environmental sustainability. The report indicates mixed performance in achieving these targets. 31% of farms met the target of producing 465 kg of milk solids per cow, and 43% met the somatic cell count (SCC) target of 150 cells/ml.
On a positive note, the sector showed improvements in environmental performance, with 67% of farms using less than 170 kg of nitrogen per hectare and 58% adopting protected urea. The share of farms applying more than 50% of nitrogen as protected urea increased to 28%, and 81% of farms now use low-emission slurry spreading.
View the full suite of factsheets here