Rising Dairy Prices in Ireland Driven by Decline in Farmers and Increasing Demand
Source: DairyNews.today
Ireland has seen a notable rise in dairy prices, driven by a shrinking farming workforce and growing consumer demand. Between September and October, the price of butter climbed by 49 cents per pound to €4.23. The cost of two liters of full-fat milk rose by three cents, while Irish cheddar cheese increased by nine cents per kilo.
Denis Drennan, President of the Irish Creamery Milk Suppliers Association (ICMSA), highlighted the growing strain on the dairy sector. "We’re witnessing a global reduction in the number of farmers, resulting in decreased food production," Drennan noted. "Economic pressures and rising production costs in recent years are impacting not only farms but also household budgets."
Drennan pointed out additional challenges: fewer young people are entering farming, a trend that threatens the industry's long-term sustainability. According to the Central Statistics Office (CSO), the average dairy farmer's income fell by 59% last year, underscoring the financial hurdles dissuading many from continuing in agriculture.
CSO data reveals a broader decline across Irish agriculture. Agricultural income fell by 49%, or €2 billion, to €2.1 billion in 2023. The value of agricultural output dropped 13%, or €1.6 billion, down to €11.3 billion, affected by lower prices and reduced production in essential sectors like milk and cereals. Notably, the value of milk fell by 30%, or €1.5 billion, with prices declining by 26% and production volumes down by 5%.
As these factors converge, consumers may see further price adjustments in the dairy sector. The ongoing issues signal the need for strategies to attract younger generations into farming and support the sector amid rising economic pressures.
Drennan pointed out additional challenges: fewer young people are entering farming, a trend that threatens the industry's long-term sustainability. According to the Central Statistics Office (CSO), the average dairy farmer's income fell by 59% last year, underscoring the financial hurdles dissuading many from continuing in agriculture.
CSO data reveals a broader decline across Irish agriculture. Agricultural income fell by 49%, or €2 billion, to €2.1 billion in 2023. The value of agricultural output dropped 13%, or €1.6 billion, down to €11.3 billion, affected by lower prices and reduced production in essential sectors like milk and cereals. Notably, the value of milk fell by 30%, or €1.5 billion, with prices declining by 26% and production volumes down by 5%.
As these factors converge, consumers may see further price adjustments in the dairy sector. The ongoing issues signal the need for strategies to attract younger generations into farming and support the sector amid rising economic pressures.
