Low milk prices and increased feed costs due to drought reduced Irish dairy farmers' income over the past year by almost € 25,000 on average per 100 cows.

According to new data from the state-owned Teagasc agency specializing in research, consultancy and education in agriculture, horticulture, food and rural development in Ireland, net profit per cow fell 26% or 246 euros, down from 941 euros in 2017 to 695 euros in 2018.

The net margin per liter of milk produced decreased from 16.93 cents in 2017 to 12.17 cents last year, while the margin per hectare decreased from 2168 to 1590 euros.

Figures show that the average price of milk last year fell 1.45 cents per liter, falling to 36.68 cents per liter, compared with 38.13 cents per liter in 2017.

Although average productivity per cow increased last year by 151 liters, reaching 5712 liters, variable costs were also significantly higher, increasing by almost 3 cents per liter to 14.95 cents per liter.

Teagasc Dairy Advisor Joe Kelleher said milk production growth and variable cost growth reflect the increased use of animal feed last summer in dairy herds in the south and east as a result of falling grass growth during drought.