NEW Stormont figures show that total income from farming (TIFF) in Northern Ireland increased by more than 17 per cent last year, driven mostly by significant rises in both dairy and beef prices.
And the agri-food sector's output in 2022 rose by nearly a quarter to £3.07 billion, underlining how vital farming is to the north's economy.
The Department of Agriculture, Environment and Rural Affairs (Daera) said the (TIFF) figure rose by 17.4 per cent (or 11.3 per cent in real terms) to £605 million last year from £515 million in 2021.
There was a 26 per cent increase in the value of output from the livestock sector, while field crops increased by 31 per cent and horticulture increased by 12 per cent.
The figures are for the calendar year so represent the out-turn across two harvest years.
Dairying remains the largest contributor to the total value of gross output at £1.13 billion - up 40 per cent between 2021 and 2022. The annual average farm-gate milk price increased by 41 per cent to 44.5 pence per litre while the volume of raw milk produced in the north decreased by 0.6 per cent to 2.5 billion litres.
The output value of cattle was 16 per cent higher at £603 million in 2022 and sheep value rose 6 per cent to £106 million, though the poultry sector recorded a 6 per cent decrease in its production volume.
Cormac McKervey, senior agricultural manager at Ulster Bank, said the figures reflect what was generally a good year for farm businesses.
“Dairy and beef farmers are by far the biggest contributors to the Northern Ireland income figures and have helped drive the total gross output to over £3 billion for the first time.
“The milk sector’s output, at £1.13bn, was up 40 per cent on the year and reflects the unprecedented farmgate milk price which averaged 44.5p per litle across the year, peaking at 50p in December.
“It’s often said that the cure for high prices is high prices, and sure enough the market has corrected and now stands at 35p, with further cuts to come. It’s a reminder of how volatile farm incomes can be.
“Beef output rose 16 per cent across the year to over £600m with beef price rising throughout the year to average 417p per kilo. But unlike milk, beef price has risen through quarter one this year, and with supplies just meeting demand, it is likely prices will remain high."
Mr McKervey added: “While total income did rise significantly, it is important to note that the costs of production also rose significantly with grain, fuel, fertilizer, and more recently finance all rising in price.
“Add in machinery, building and labour costs, and it’s clear that while most farm enterprises performed well last year, the costs of doing business meant that margins were lower than what they may previously have been.
“It’s estimated that the costs across local farms rose by over £500m last year which equates to around £10m per week.
“The only sector which didn’t enjoy better margins last year was the pig sector which continued to shift heavy losses on the back of poor pig prices and high feed costs.
“Thankfully after two difficult years most pig farmers are now at or near a breakeven point, and there is a much better prospect of generating some profit this year."
