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Widening margin gap in mid-season lowland lamb farms

The disparity in gross margins between top and bottom mid-season lowland lamb producers expanded significantly in 2025. Teagasc’s latest National Farm Survey highlights marked differences in productivity and costs across approximately 7,400 Irish sheep farms.

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Widening margin gap in mid-season lowland lamb farms
The gross margin gap between the highest and lowest performing mid-season lowland lamb producers widened notably in 2025, according to findings from the Teagasc National Farm Survey. This survey, encompassing data from around 7,400 sheep farms with over 20 ewes, reveals a clear divergence in farm profitability and production efficiency.

Top-tier producers achieved a gross margin of €1,722 per hectare, nearly seven times that of the bottom third, which recorded just €253 per hectare. While the bottom group’s margins declined from €406 per hectare in 2024, the top producers saw a 7% increase in their returns. Gross output per hectare also differed sharply, with top farms generating €2,485 compared to €797 for the lowest performers.

Physical performance indicators showed that the top third maintained higher stocking rates at 8.62 ewes per hectare and a superior weaning rate of 1.49 lambs per ewe. By contrast, the bottom third carried 5.17 ewes per hectare and weaned only 0.99 lambs per ewe. Despite higher total direct costs of €763 per hectare, mainly due to concentrate feed, the efficiency and productivity gains ensured the top farms outperformed others substantially. For further details, the Teagasc National Farm Survey enterprise factsheets are available online.
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