Dairy income to fall 16% in 2022

At the farm level, feed, fertiliser and fuel prices have all been on the increase in 2021. Fertiliser costs are expected to be the biggest worry for farmers in 2022.

Average dairy income is forecast to fall by 16% in 2022, due to sharply higher production costs, with just a 2% increase in milk production forecast.

Dairy incomes are expected to fall by more than a fifth next year, according a new report by Teagasc economists as soaring fertiliser prices are expected to result in a sharp decline in incomes in grassland and tillage systems. 

Average dairy income is forecast to fall by 16% in 2022, due to sharply higher production costs, with just a 2% increase in milk production forecast.