Irish income to fall in 2009
In 2008 high commodity prices, an increase in the milk quota and the introduction of the Suckler Cow Welfare Scheme, will mean farmers will not see a dramatic reduction on the record income level in 2007, even though input prices for feed and fertiliser have risen considerably.
There was little sign of prices for the main inputs — feed, fertiliser and fuel — falling, and output prices were under pressure.
Milk prices were heading for considerably lower levels next year. But the absence of Brazilian beef from the EU was predicted to support 2009 EU and Irish cattle prices at levels close to 2008. This year’s very difficult harvest will put a dent in 2008 profits for tillage farmers, but grain prices are expected to remain high, and more favourable 2009 weather would bring higher profit margins. Without a world trade agreement EU beef imports were likely to grow strongly over the next 10 years. But a significant reduction in Irish suckler beef production was predicted, even without a WTO agreement.
With the EU reducing dairy export refunds, and committed to eliminate them by 2013, the European Commission was effectively implementing some aspects of a WTO agreement by itself, said Kevin Hanrahan.
