Northern Ireland farming industry profits rose by 8% last year

The Northern Ireland farming industry saw its profit rise by 8% in real terms in 2021, up from £463m to £501m, 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 9% to £2.43bn while input costs increased 10% to £1.72bn.

Farming profits are volatile, moving sharply depending on global prices.

The estimated value of subsidies in 2021 was £308m, equivalent to 62% of profits.

Dairying remains the largest sector, accounting for turnover of £805m in 2021, up by 20% on 2020.

Cattle turnover was 7% higher in 2021

The annual average farm-gate milk price rose by 16% to 31.53 pence per litre while the volume of raw milk produced increased by 3% to 2.5bn litres.

The turnover from cattle was 7% higher at £485m in 2021.

The average producer price for finished clean cattle was £3.83 per kg, up 11% on 2020.

The statistics, produced by the Department for Agriculture, Environment and Rural Affairs (Daera), also show some of the affects of inflation.

The average price paid for a tonne of fertiliser was by up by 26% year on year while the cost of fuel and oils was up 18%.

Pig farms are forecast to see a fall in profits

Daera has also forecast that at the individual farm level average profits are likely to be up by 16% in the 2021/22 financial year.

However, there are very big variations between sectors.

Dairy farms are forecast to have a bumper year with average profits rising 31% from £63,000 to £82,000.

However, pig farms, which are dealing with a collapse in prices and rising cost of feed, are forecast to see average profits fall by 56% from £82,000 to £36,000.