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.
calendar icon 27 January 2012
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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

- You can view the full report by clicking here.

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