Aidan Brennan takes a look at some of the factors affecting the outlook for dairy farmers in 2022.

Despite the shock farmers will get when the invoice for the first loads of fertiliser arrive, you can’t but be positive about the outlook for dairy in 2022.

Yes, the rising feed and fertiliser prices are going to impact on profit.

However, Teagasc is predicting that 2022 will be about 12% better than 2020 and that was a good year for dairying.

Farmers that can mitigate some of the input cost increases are in for a very good year. Of course, all of this presumes benign weather conditions.

As we have seen in 2009, 2012 and 2018, adverse weather can have a huge impact on profit and morale.

Looking at policy, with the nitrates action plan and climate action plan published in 2021, there shouldn’t be too many more shocks to the system in 2022.

Instead, it will be a year of readjusting to the new landscape of tighter environmental control, rising costs and increased scarcity of labour.

Farmers and processors from across the country will be looking to the Supreme Court in January for news of the An Taisce appeal.

Negative news here will be very bad news for Glanbia farmers, who are relying on the goodwill of neighbours to process a significant proportion of their milk pool.

Look also

In May, the global dairy market experienced significant changes, with varying production levels and shifting export trends in New Zealand.

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