Preliminary figures from Teagasc Future Beef Programme Demonstration Farms across the country show that net profits on these suckler farms ranged from €915/ha to a net loss of €618/ha.

Speaking on the Teagasc Beef Edge podcast, Teagasc Future Beef Programme advisor, Aisling Molloy discussed the profitability of farmers involved in the programme with the podcast host Catherine Egan.

She highlighted that the figures have not been fully-finalised yet but said: "What we have so far is showing that the gross margin was up by over 18% and that's from €787/ha in 2023 up to €931/ha in 2024."

Molloy said that some of the rise in the gross margin was due to a decrease in variable costs which she said went down from €1,165/ha to €1,036/ha.

As well as this, factors such as "a missed round of fertiliser in the June/July 2024 period, when grass wasn't really growing" also helped the gross margin figure.

Molloy explained that "there was a reduction in costs" with "a lot less money spent on meal last year, partly because some cattle were sold live rather than finished".

Health, breeding and contractor costs on these farms remained similar with an increase seen in straw costs.

Fixed costs on the programme farms decreased slightly but are expected to rise again. The Teagasc advisor explained: "There's a lot of investment going into slurry storage, new sheds and handling facilities across the farms".

The average net profit on the programme farms increased from €86/ha to €243/ha.

Molloy said that some of the suckler farmers that are well-established in a system of production have a net profit figure of up to €915/ha.

She said: "Others that are still investing in their farm and getting their systems set up to suit, are down at minus €618/ha so there's huge variability, but again, them lower ones have a plan, and that'll come forward in terms of profitability over the coming years."