Bord Bia: €6.3 Billion in Dairy Exports for 2024
The total value of dairy exports in 2024 is estimated at €6.3 billion, according to Bord Bia's Export Performance and Prospects Report 2024-2025, published today, January 8. This estimate is in line with the dairy export value for 2023 as Ireland shipped over 1.6 million tonnes of dairy products to approximately 140 markets worldwide.
Key Markets and Distribution
The European Union (EU) remains the largest market, absorbing 38% (€2.4bn) of Ireland's dairy exports, followed by the United Kingdom, which accounted for 17% (€1.1bn). The United States was the third major importer, representing 12% (€750m) of these exports.
Challenges in Milk Production
2024 saw a dip in Irish milk collections, dropping to approximately 8.3 billion litres, marking a 2.5% decline from 2023 as per the Central Statistics Office (CSO). This marks the second consecutive year of decline post the removal of the milk production quotas in 2015, primarily due to adverse weather affecting grass growth during the 'peak milk' period.
International Market Dynamics
Globally, milk supply growth slowed by about 1% in 2024, with production increases in New Zealand, the USA, and Australia, while Europe faced challenges. Among the top four European producers, only France reported a supply increase.
China's previously rapid milk pool growth slowed significantly, impacting global import volumes, which grew by less than 1%. While China remains the largest importer, its demand fell by 11%, or 14.5 million tonnes, compared to 2023. Conversely, Southeast Asian markets exhibited strong demand, with notable increases in Indonesia, the Philippines, and Thailand.
Price Fluctuations and Product Performance
Butter exports experienced a significant rise in 2024, growing by €400 million, or 31%, to €1.7 billion. The EU butter prices averaged €6,360/t for the year, showing substantial improvement over the 2023 average of €4,820/t.
Future Prospects
Looking forward, uncertainties persist, notably around the nitrates derogation and trading dynamics with a possible new administration in the USA, alongside ongoing Chinese demand vagaries. Nonetheless, Ireland's diverse and sustainable dairy industry is well-positioned to navigate these challenges and seize opportunities in 2025.
