Improved profitability predicted for cattle and sheep farmers this year

PROFIT margins may increase on cattle and sheep farms this year, but not enough to generate income, predict Teagasc experts.

They blame weak sterling primarily for an expected 8% fall in prices for finished cattle. The reduction in the suckler cow payment also hits output.

However, production costs are between 16% and 18% lower this year on the average cattle farm, which is predicted to lift the gross profit margin by between 7% and 16%, compared to last year.