40% of beef farms to expand according to AIB report

Just under 40 per cent of Irish beef farmers are planning to invest in their business over the next three years, according to a report produced by AIB in association with the Irish Farmers' Association.

This will involve increasing herd size, investing in land improvement, improving breeding, adopting new technology, and investing in winter housing for animals and slurry storage.

The report, which surveyed 200 beef farmers, states that a quarter of the farmers will invest €50,000 or more in their businesses.

Some 36 per cent of farmers plan to re-invest profits to fund this expansion, with 30 per cent planning to use a bank loan, and 15 per cent using general cashflow.

About 28 per cent of beef farmers have no borrowings or outstanding credit.

More than 95,000 Irish farms have some element of a beef business. Beef exports to 70 markets last year amounted to €2.27 billion out of €3.36 billion in meat and livestock exports.

Ireland is the fifth-biggest exporter of beef globally, behind Australia, Brazil, the Netherlands and the United States.

The report also highlights the issue of succession. Just 4 per cent of beef farmers are under 35 years of age, with two-thirds aged 50 or older.

AIB last year launched a €500 million agri fund to support the growth and development of the sector.