Farm finances in Northern Ireland are currently in a healthy state according to Ulster Bank’s head of agriculture, Cormac McKervey.
McKervey made the comments at the recent launch of Balmoral Show 2025, where he said: “From a price and income perspective farming in Northern Ireland is in a good place”.
“Through the second half of last year, dairy farmers saw good farm gate returns. And these were maintained over the winter.
“For March milk, paid this month, most processors are paying a base price that is 40p/L and above.
“That is a good price for this time of the year,” he added.
Farm finances
Ulster Bank’s head of agriculture also pointed out that international milk output levels usually tend to increase as farm gate returns rally.
“”While this trend is impacting to a certain extent at the present time, it is not to an extent that will impact on prices.
“There are parts of the world which would have traditionally produced large quantities of milk. But for a number of reasons – these could be labour or environment-linked – this is not happening at the present time,” McKervey said.
Turning to beef and lamb, McKervey pointed to an envisaged continuation of the strong prices that characterise international red meat markets at the present time.
“None of us would have predicted the increase in beef prices that have been witnessed over recent times.
“The price of a finished animal has increased by around £550 per head since the beginning of the year,” he said.
However he also added that “these are exceptional prices”.
He said: “It is only right given the quality of the protein that beef represents – it has been commercially undervalued for far too long.
“Yes, there are some fears that supply-demand factor may kick in to ease the beef market somewhat.
“However, if we arrive at a new norm where the prices paid to livestock farmers more realistically reflect the quality of the food they produce, this will be an inherently good thing.”
Meanwhile lamb prices are forecast to remain relatively strong during the period ahead. Pork prices have eased slightly over recent months: but so too have feed prices.
“This means that pig margins are being maintained,” confirmed McKervey.
“It’s good to see the pig sector in such good health. Poultry meat remains steady.
“But, in truth, there is nothing to touch the margins being generated by free range egg producers at the present time. Supply and demand is driving this reality,” he said.
Land prices
According to McKervey, land prices remain very robust and strong in NI.
He said: “There seems to be a perception that investors outside of production agriculture are the main investors in land at the present time. However, from an Ulster Bank perspective we are finding that such is not the case.
“There is a huge demand for land. And it is active farmers who are leading the way in this context.
The Ulster Bank representative also noted the ongoing problems with bovine tuberculosis (TB) in NI.
“Overall, farming is in a good place at the present time. However, the threat of bovine TB (tuberculosis) remains very real.
“The number of herds impacted by the disease continues to grow with every year that passes.
“The implications for affected farmers, both from a financial and mental health perspective, are exceptionally difficult to deal with.
“There is a new TB strategy coming through. Let’s hope that it works for everyone involved,” he added.
