Teagasc Predictions of Income Growth in the Cattle and Sheep Sector ‘Wide of the Mark’

ICSA president Malcolm Thompson has said that Teagasc predictions that cattle and sheep enterprises will record a rise in income in 2009 are likely to be very wide of the mark. Speaking in response to the publication of a mid year update by the Teagasc Rural Economy Research Centre Mr Thompson said “this is certainly not the impression we are getting based on how this year has panned out to date.”

The report points to a decline in cattle ration prices and a reduction in fertiliser costs, however the reality is that large quantities of extra feed have been required this year, particularly in the west of Ireland. Due to incessant wet weather, especially in the months of April, May, and now again in August, farmers have had to buy in extra feed for cattle in an effort to compensate for poor growth and water logged ground.

Mr Thompson said “the exceptionally bad summer of 2008, followed by an extended winter-feed period has resulted in the need for extra supplementary feeding. Many cattle and sheep farmers bought additional silage, hay and other roughages in the late spring as their own supplies ran out.” 

“While fertiliser prices may have dropped, the economic return of fertiliser has been dubious on wetter ground. Grass has had less feeding value than normal and utilisation of grass has been very difficult.”

He continued “The data from the CSO and the EU Commission, which shows a decline in cattle prices of 8 – 12% is understating the reality.  The gap between 2008 and 2009 prices is widening as the year progresses and many farmers have been forced to sell sucklers and store cattle at give-away prices owing to credit pressures and weather induced feed shortages.” 

“Severe budget cuts to farmers will also impact in 2009, particular in the drystock sector. Cuts to disadvantaged area payments, REPS and the Suckler Cow Welfare Scheme to name just a few have not been factored in. I wish it was the case that the cattle and sheep sector would see an income rise this year, but unfortunately in reality the opposite is in fact true,” he concluded.