Farming profit in NI surges by 26% to £456m

The value of output in the pig sector increased by 20% to £217m with producer prices up by 8%

The Northern Ireland farming industry saw its profit surge by 26% in real terms last year, rising from £342m to £456m, official figures suggest.

The profit is calculated by assessing the value of output and subsidies and subtracting the cost of production and finance.

Total turnover rose by 4% to £2.23bn while input costs increased marginally from to £1.55bn.

Farming profits can tend to be volatile.

They rise and fall sharply depending on global prices.

The estimated value of subsidies in 2020 was £297m, equivalent to 65% of profits.

Dairying remains the largest sector, accounting for turnover of £667m in 2020, up by 2% on 2019.

The annual average farm-gate milk price fell by 0.7% to 27.01 pence per litre while the volume of raw milk produced increased by 2% to 2.4bn litres.

The turnover from cattle was 2% higher at £438m in 2020.

The average producer price for finished clean cattle was £3.46 per kg, up 6.1% on 2019.

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• Farming subsidies 'could be shared more evenly'

Smaller sectors saw a significant rise in turnover: the value of output from sheep increased by 27% to £84m and the average producer price increased by 15% to £4.46 per kg.

The value of output in the pig sector increased by 20% to £217m with producer prices up by 8%.

The Department of Agriculture, Environment and Rural Affairs (Daera) has forecast that at the individual farm level profits are likely to be up by 27% in 2020/21.

The average farm profit was £25,935 in 2019/20 and rose to an average of £33,039 in 2020/21.

The exception is cereal farms which are expected to show a decrease in profits due to lower yields.