An analysis of the 2025 Teagasc DairyBeef 500 Profit Monitor results

Alan Dillon

The Irish beef sector has undergone significant structural and economic changes in recent years, particularly dairy-beef systems. The Teagasc DairyBeef 500 Programme, established to promote sustainable and profitable dairy calf-to-beef systems, provides a valuable dataset through its annual Profit Monitor analysis. This programme aims to demonstrate best practice in technical and financial performance, targeting a baseline net margin (excluding direct payments) of €500 per hectare, while improving environmental and production efficiency. The 2025 Profit Monitor results represent a pivotal year for the DairyBeef 500 farms. Strong market conditions, particularly a sharp rise in beef prices, combined with improved technical performance, led to a substantial increase in profitability across participating farms. However, the results also highlight considerable variation in performance between farms, indicating that management efficiency and system optimisation remain critical determinants of success. This paper analyses the key findings of the 2025 DairyBeef 500 Profit Monitor results. It examines trends in profitability, output and cost structures, explores the drivers behind improved margins and evaluates differences between top- and bottom-performing farms. The discussion also considers broader implications for system sustainability and future risks facing the sector.

Overview of profitability trends in 2025

The most striking feature of the 2025 DairyBeef 500 results is the dramatic increase in profitability (Table 1). The average net margin across programme farms rose to €1,465 per hectare (ha) (excluding direct payments), representing a doubling in profit compared to 2024. This follows a steady upward trend from €542/ha in 2023 and €717/ha in 2024. This improvement was primarily driven by increased gross output, which rose to €4,181/ha in 2025, up significantly from €3,405/ha in 2024. The rise in output reflects higher beef prices, improved animal performance, and more efficient production systems. Notably, variable costs remained stable (€1,870/ha in 2025 vs €1,856/ha in 2024), meaning that most of the increase in output translated directly into higher margins. Gross margin in 2025 increased sharply to €2,311/ha, while fixed costs showed only a modest rise to €846/ha. This indicates that the profitability gains were not eroded by rising overheads, reinforcing the importance of output-driven growth rather than cost-cutting alone. Overall, 2025 can be characterised as an exceptionally strong year for dairy-beef systems on the Teagasc DairyBeef 500 Programme, largely due to favourable market conditions and effective farm management.

Table 1. Financial performance (per hectare, ha) of DairyBeef500 Monitor farms 2022 -2025

Key drivers of improved profitability

Beef price increases:

The dominant external factor influencing profitability in 2025 was the sharp increase in beef prices. Teagasc analysis indicates that finished cattle prices rose significantly compared to prices in 2024, with some periods seeing price differences of up to €2/kg, carcass depending on timing of sale. This price surge significantly boosted farm output values. Higher beef prices also had indirect effects, with the price of calves experiencing significant increases from April 2025 onwards, a trend that continued into 2026. Farms that maximised production, through higher stocking rates and improved live weight gain, were better positioned to capitalise on favourable market conditions. Consequently, the benefits of good technical performance were amplified by beef price increases.

Increased output per hectare and per livestock unit:

Live weight output per hectare and per livestock unit (LU) emerged as critical performance indicators in 2025. Farms that achieved higher live weight production per LU were significantly more profitable. For example, the top third-performing farms in terms of profitability achieved 592 kg live weight/LU, compared to 562 kg/LU on the bottom third of farms in terms of profitability. This reflects improvements in several underlying factors, including:

• Animal genetics and growth rates.
• Herd health.
• Grassland utilisation and feeding strategies.

These findings reinforce the central principle of the DairyBeef 500 programme: profitability is driven by efficient biological performance as much as by market conditions.

Stocking rate optimisation:

Stocking rate also played a crucial role. The top-performing farms had an average stocking rate of 2.36 LU/ha, (188 kg organic nitrogen/ha) compared to 1.85 LU/ha (148 kg organic nitrogen/ha) for the bottom-performing farms. The higher stocked farms at 2.36 LU/ha required a nitrates derogation. Higher stocking rates increase output per hectare, provided they are supported by excellent grassland management. However, increasing stocking rate through greater concentrate input rather than improving the quantity and/or quality of forage in the diet is likely to lead to higher costs and potentially reduced margins. The 2025 results suggest that successful farms had both high stocking rate and good technical performance, achieving higher output without proportionally increasing costs.

Cost control and efficiency

While liveweight output increased significantly, cost control remained an essential factor in profitability. The top-performing farms had lower variable costs per unit of production, at €1.38/kg live weight, compared to €1.62/kg on lower-performing farms. This highlights the importance of:

• Efficient feed use and grassland management.
• Strategic purchasing of inputs.

Farm performance

One of the most important insights from the 2025 results is the significant variation in profitability between farms. The top third of farms achieved a net margin of €2,246/ha (excluding direct payments) compared to €666/ha for the bottom third of farms. Although a proportion of the farms in the bottom third in terms of profitability were in the ‘development’ stage and had not reached their potential in terms of live weight output and efficiency, the wide disparity in profitability amongst the groups suggests that a high level of output and on-farm technical efficiency are key to delivering high profitability. High beef prices alone cannot deliver high profits if all the other key elements are not in place. Even in a strong market year, some farms significantly underperformed relative to their peers. Key differences between top and bottom performers include:

• Output levels: Top farms had much higher output per hectare (€5,130 vs €3,085).
• Efficiency: Lower costs per kg of production.
• Stocking rates: Higher profit farms were higher stocked but had high levels of grazed grass and top-quality silage in the diet.
• Technical performance: Better animal growth rates and herd performance.

These findings highlight the importance of benchmarking and continuous improvement. The Teagasc Profit Monitor plays a critical role in enabling farmers to compare their performance and identify areas for improvement.

Role of the Teagasc Profit Monitor system

The Teagasc Profit Monitor is a key tool underpinning the DairyBeef 500 analysis. It provides a detailed breakdown of farm income, cost and performance, allowing farmers to benchmark against others and track progress over time. Its main functions include:

• Evaluating financial and physical performance.
• Identifying strengths and weaknesses.
• Supporting decision-making and planning.
• Facilitating discussion group analysis.

By enabling farmers to quantify their performance, the Profit Monitor encourages data-driven management. This is particularly important in systems like dairy-beef, where margins can be tight and small improvements in efficiency can have significant financial impacts.

System implications

The 2025 results demonstrate that dairy-beef systems can achieve high levels of profitability under favourable conditions. However, the continuation of a nitrates derogation allowing stocking rates in excess of 170 kg organic nitrogen/ha is key to achieving this in future.

Dependence on market conditions:

The strong profitability in 2025 was heavily influenced by high beef prices. While technical performance played a role, the scale of profit increase suggests that market conditions were a major driver. This creates vulnerability to price fluctuations in future years with beef prices in 2026 already likely to be below 2025 levels.

Importance of technical efficiency:

The variation between farms indicates that not all producers are equally equipped to handle market volatility. Farms with strong technical performance, high output, efficient cost structures, and good management, are more resilient to price changes.

Input cost pressures:

Although variable costs remained relatively stable in 2025, there are ongoing concerns about rising input costs, particularly for fertiliser and feed. These costs could erode margins if output prices decline.

Future risks:

Teagasc has identified calf price as a key concern for future years. Rising calf prices could increase the cost base for dairy-beef systems, reducing profitability if beef prices do not increase correspondingly.

Importance of retaining the Nitrates Derogation:

The farmers in the top third operated at an organic nitrogen stocking rate of 188 kg/ha and were thus farming with a Nitrates Derogation. The Derogation was extended in December 2026 for a further three years. The longer-term financial success of dairy-beef systems is contingent on the derogation continuing to be available.

Broader context within Irish agriculture

The strong performance of DairyBeef 500 farms in 2025 reflects broader trends in Irish agriculture. Across the sector, higher output prices contributed to increased farm incomes, particularly in cattle systems. However, this growth has been irregular and is subject to market volatility. The experience of 2025 highlights both the opportunities and risks associated with commodity price fluctuations. The DairyBeef500 programme plays an important role in helping farmers navigate these challenges by promoting best practices and providing robust benchmarking data.

Conclusions

The 2025 Teagasc DairyBeef500 Profit Monitor results represent a landmark for dairy calf-to-beef systems in Ireland. Profitability increased dramatically, with this improvement driven by a combination of strong beef prices, increased output, and efficient cost management. Despite these positive results, the analysis also highlights several challenges. The reliance on favourable market conditions raises concerns about long-term sustainability, while rising input and calf prices may pose risks to future profitability. Ultimately, the 2025 results reinforce the core principles of the DairyBeef 500 programme: that profitable and sustainable dairy-beef systems depend on a combination of strong technical performance, efficient resource use, and informed financial management. The wide variation in farm performance suggests that there is significant scope for improvement across the sector, particularly through the adoption of best practices and the use of tools such as the Profit Monitor. As the sector moves into a potentially more uncertain economic environment, the lessons from 2025 will be critical. Farms that focus on efficiency, output optimisation, and cost control will be best positioned to maintain profitability and resilience in the future.

Compiled and edited by Mark McGee and Paul Crosson, Teagasc, Grange Animal & Grassland Research and Innovation Centre, and first published in BEEF2026 – Driving Sustainable Performance, additional reading from BEEF2026 is available here.