Ireland Remains Exposed to Global Dairy Volatility
Speaking to Agriland at the National Ploughing Championships, Conor Mulvihill said Ireland’s dairy economy relies heavily on overseas markets. Nineteen of every 20 litres of milk produced in Ireland must be exported, leaving farmers and processors directly exposed to prices set in international markets.
Mulvihill described 2025 as a resilient year for the sector, saying peak production volumes had been sold before international dairy values weakened. He said changes in product demand and excess supply worldwide continued to affect returns received by Irish farms.
He also pointed to signs of tighter global milk supply. According to Mulvihill, output reductions in several major producing regions were helping to stabilise basic commodity values. He quoted the principle that “the biggest corrector of low prices is low prices” when describing the relationship between weak prices and supply contraction.
Mulvihill urged the sector to present itself as a nutrition industry rather than solely as a conventional dairy industry. He identified a global increase in demand for specialised dairy ingredients, including whey proteins used in functional health products and in developing weight-loss treatments associated with GLP-1 regimens.
He said stronger investment by dairy companies, farmers and the Irish government in protein processing could create higher-value markets for Irish dairy. Mulvihill referred to Ireland’s family-farm co-operative structure and seasonal grass-fed production system as existing features that could support the country’s positioning in specialised nutrition.
The discussion took place alongside concerns about the future of dairy farming. An Opinions survey commissioned by Agriland and the Irish Creamery Milk Suppliers’ Association found that one in three Irish farmers intended to leave agriculture within five years. Sixty-eight per cent of respondents identified bureaucracy, rules and regulation as major obstacles, while 48 per cent cited environmental restrictions as a significant barrier to the long-term viability of their businesses.
Mulvihill said the future of Ireland’s European Union nitrates derogation after 2028 was the most immediate regulatory issue. He rejected describing the allowance as a concession and said Irish farmers were applying the EU Nitrates Directive fully within a grass-based biological system that captures nutrients. He also said Ireland had some of the highest water quality and lowest nitrate levels in the European Union.
Mulvihill asked farmers to help collect detailed data from their holdings before negotiations in Brussels. He said the information would be used to support Ireland’s case in discussions about the derogation.
