Irish Cattle Prices Likely to Drop in 2012
IRELAND - 2011 saw substantial increases in the prices of cattle relative to 2010. These increases in cattle prices contributed to an improvement in average cattle margins on Irish beef systems in 2011 despite some increases in direct costs of production.
27 January 2012
1 minute read
In spite of the favourable output price movements in 2011, net margins
for the majority of cattle farmers remained negative, i.e. the total costs
of production exceeded the value of output.
According to Teagasc's Outlook 2012 report, a tightening supply of cattle both in Ireland and the EU, some
improvement in the macroeconomic performance of continental EU
member states, and the re-emergence of the EU as a net-exporter of
beef, all contributed to higher cattle prices in 2011.
Given the ongoing macroeconomic uncertainty in the EU, further cattle
price increases of the magnitude seen in 2011 are unlikely in 2012, and
as a result Irish cattle prices are forecast decline by 2 percent in 2012
relative to 2011.
With a decline in cattle prices and rising input prices, forecast, margins
on Irish cattle farms are expected to fall slightly relative to 2011 but to
remain ahead of 2010 levels.
Further Reading
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