Danske Bank’s head of agri-business, Rodney Brown, is confirming that most of Northern Ireland’s farming sectors are performing well at the present time.

In addition, the excellent weather conditions are helping to extend the 2021 grazing season in a meaningful way.

As a consequence, dairy and beef producers are benefitting from a combination of cheaper feed costs and the prospect of a shorter winter in their respective farming sectors.

According to the Danske Bank representative, milk prices have continued to rise. Demand is good and processers seem to be in a position to offer these prices.

Browne added: “But in terms of overall financial performance we have definitely seen costs rise. This leaves people in a net position which would not be that much different from this time last year.

“Machinery prices have soared and steel prices have risen around the world. Looking back on the out-workings of the last Tier 2 grant application, which was processed back in May, we have seen a lot of the kit that was ordered not being delivered on time," he told Agriland.

Where beef is concerned, Browne immediately reflected on the significant uplift in prices that have been a feature of the market for the past number of months.

“Some farmers might say that it’s only now that they are starting to receive a fair price for their finished cattle,” he commented.

But, as was also pointed out, beef is not a circular economy.

“There are not that many farmers out there, who take animals from birth through to finishing,” Browne explained.

“And, again, increasing feed costs are eating into the margins that finishers might hope to make this winter," he added.

It’s a similar story, where pigs and poultry are concerned.

“Both sectors are doing well at the present time,” Browne confirmed.

But as he also pointed out, it’s not all good news; all of Northern Ireland’s meat sectors are now reporting delays in getting animals through their systems.

Specifically, where pigs are concerned, shortages of labour are starting to create delays when it comes to pigs being brought through to markets.

Brown explained: “Whereas up to now, farmers might have been able to get two loads of pigs away per week, this number might well have been reduced back to loads.

“At a very fundamental level, this is having a very negative impact on farm cash flows.

“Pig returns will always be volatile. We saw a bit of a drop in pig prices at the beginning of this week. But, on the whole, the pig industry is faring well and our pig producers continue to do an excellent job," he continued.

The Danske Bank representative believes that Northern Ireland’s cereal sector can look forward to a bright future.

Browne continued: “This year has seen local growers securing excellent yields of both grain and straw with prices for both on the rise.

“DAERA [Department of Agriculture, Environment and Rural Affairs] has pushed forward with a two-year pilot programme aimed at encouraging the production of protein crops here in Northern Ireland.

“Importing cereals has an immediate cost implication. But it is a practice that also adds to the carbon footprint of our farming sectors," Browne concluded.