Ireland's Dairy Industry in 2024

Ireland is renowned for its premium dairy products, attributed to its lush green pastures and temperate climate, providing an ideal environment for dairy farming. As of 2024, Ireland continues to hold a significant position in the global dairy sector, supported by impressive production and export figures.

Dairy Cattle and Milk Production

Home to approximately 1.5 million dairy cattle, Ireland achieves a milk production volume of about 8.3 billion liters annually. This production capacity underscores Ireland's crucial role in meeting global dairy demand.

Milk Processing and Cheese Production

Ireland's advanced milk processing infrastructure handles around 7.9 billion liters of milk annually. The country's cheese production is notably strong, with an output of approximately 250,000 metric tons per year. Additionally, Ireland produces around 300,000 metric tons of milk powder and whey annually, showcasing a diverse portfolio of dairy products.

Key Dairy Enterprises

Prominent companies in Ireland's dairy sector include Ornua, Kerry Dairy Ireland, Glanbia Ireland, and Dairygold. These companies are involved in various aspects of the industry, from marketing and exporting to processing and cheese production.

Export and Import of Dairy Products

Ireland exports about 1.4 billion liters of milk equivalent annually, supplying key markets across the EU, US, and Asia. On the import side, the country brings in around 100 million liters of milk equivalent per year, reflecting a strong export-oriented strategy.

Recent Developments and Market Events

Significant developments include the appointment of Cesar França as Global Foods Division Managing Director at Ornua and the stabilization of raw milk prices following a mid-2023 surge. Notably, Kerry Dairy Ireland announced a milk payment increase to 53.5 cents per liter in January 2024, while Lakeland Dairies set the milk price for July at 48.25c/l.

Sustainability efforts are evident in Greenhills Farm's collaboration with Ørsted on a solar initiative, contributing to environmental goals. Rising production costs have led to increased consumer prices, with a potential €1.5 billion economic loss looming if Ireland loses its nitrates derogation.

Trade dynamics are in focus, with concerns about a potential EU-US trade agreement impacting exports. Import restrictions due to the bluetongue virus have also posed challenges. Additionally, the bovine tuberculosis compensation scheme has been highlighted as a financial concern for farmers.

Retail dynamics are shifting, with Lidl and Aldi engaging in price wars on milk, affecting dairy farmers' margins. Meanwhile, the Irish Creamery Milk Suppliers’ Association has voiced concerns over these price reductions.

Technological investments and sustainability initiatives continue to shape the industry, with Danone's Wexford facility transitioning to renewable energy and research efforts targeting methane emissions from livestock.

Market challenges persist, with the Bord Bia audit emphasizing Ireland's commitment to high standards and sustainability. The legal challenge regarding the nitrates derogation remains a critical issue, potentially impacting over 5,000 farmers and the broader industry's competitiveness.

Irish processors like Lakeland Dairies have reduced November prices amid forecasts of a 45% drop in farm margins by 2026. Kerry Dairy Ireland and other processors have reduced milk prices. Kerry Dairy Ireland announced a cut in its milk price for November deliveries. Other processors like Dairygold and Lakeland Dairies have also reduced their milk prices.

The Irish Creamery Milk Suppliers Association is actively involved in advocating for transparency in the food supply chain within Ireland.

Ireland's nitrates derogation has been extended for three years amidst ongoing challenges in the EU dairy sector. The European Commission has extended Ireland's nitrates derogation for another three years, allowing Irish farmers to exceed standard nitrate limits, aiding their capacity to maintain higher production levels. Ireland has recorded recent increases in milk production, but these gains have been insufficient to counterbalance declines in other major producer states.

Ireland's government has introduced new employment permit quotas to address labor shortages in the dairy and meat sectors. The initiative aims to ensure that Ireland maintains a competitive and agile workforce, particularly in rural areas where the agri-food sector is a significant employer.

Modified: 2026/01/01

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