2025 a landmark year for DairyBeef 500 profits but uncertainty looms
Established to achieve an average net margin of €500/ha on calf to beef farms, all profitability expectations were surpassed on DairyBeef 500 monitor farms in 2025.
That’s according to Alan Dillon, DairyBeef 500 Programme Manager, who spoke to farmers at today’s BEEF2026 Open Day in Teagasc, Grange.
“Excellent market conditions and improved technical performance drove a substantial increase in profitability last year on farms enrolled in the programme,” Dillon explained before adding: “Average net margin across programme farms rose to €1,465/ha, excluding direct payments, effectively doubling compared with 2024.”
This increase in margin was largely driven by rises in gross output, while variable costs – on average – remained broadly stable across the farms. Further details in table 1 below.
Table 1: Financial performance (per hectare) on DairyBeef 500 Monitor farms 2022-2025
| Year | Output (€/ha) | Variable costs (€/ha) | Gross margin (€/ha) | Fixed costs (€/ha) | Net profit (€/ha) excl. direct payments |
| 2025 | 4,181 | 1,870 | 2,311 | 846 | 1,465 |
| 2024 | 3,405 | 1,856 | 1,548 | 831 | 717 |
| 2023 | 3,330 | 1,990 | 1,341 | 799 | 542 |
| 2022 | 3,187 | 1,913 | 1,274 | 774 | 500 |
Despite the substantial increase in net margins, Dillon noted that there are potential grounds for concern in the years ahead.
“Input cost pressures aren’t too far from farmers’ minds. While variable costs were relatively stable in 2025, rising fertiliser and feed costs could erode margins if output prices decline.
“Additionally, higher calf prices, which have been evident this spring, could increase the cost base for dairy-beef systems, reducing profitability if beef prices do not rise correspondingly.
“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,” Dillon added.
Furthermore, the DairyBeef 500 Programme Manager explained, farmers in the top third of profitability within the programme operated at an organic nitrogen stocking rate of 188kg/ha and were therefore 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.
For more information on the above, read: An analysis of the 2025 Teagasc DairyBeef 500 Profit Monitor Results