Ireland's Dairy Industry Overview

Ireland is recognized worldwide for its top-quality dairy products, largely due to its ideal climate and lush landscapes supportive of dairy farming. It plays a vital role in the global dairy market.

Dairy Cattle and Milk Production

Ireland is home to approximately 1.5 million dairy cattle, producing around 8.3 billion liters of milk annually. This significant production capacity underscores Ireland's influence in the international dairy sector.

Milk Processing and Production

The country's milk processing capacity is about 7.9 billion liters annually. Ireland also produces approximately 250,000 metric tons of cheese and 300,000 metric tons of milk powder and whey each year, showcasing its diverse dairy offerings.

Key Dairy Enterprises

• Ornua: A well-known dairy co-operative recognized for its global marketing and export of Irish dairy products.
• Kerry Dairy Ireland: Prominent for its extensive milk processing and cheese production operations.
• Glanbia Ireland: Known for producing cheese, whey, and various other dairy products.
• Dairygold: A leading co-operative focusing on dairy farming and exporting activities.

Significant Dairy Farms

• The Ballygrad Farm
• The Ballynoe Farm
• The Aherlow Farm
• The Rathmore Farm

Export and Import of Dairy Products

Ireland's dairy exports are substantial, amounting to approximately 1.4 billion liters of milk equivalent annually, with the EU, the US, and Asia being major markets. Imports remain minimal, around 100 million liters of milk equivalent per year.

Recent Events in the Irish Dairy Market

• Appointment of Cesar França as Global Foods Division Managing Director at Ornua.
• Stabilization of raw milk prices post a surge in June 2023.
• Kerry Dairy Ireland set June milk price at 42.5 cents per liter in response to market conditions.
• Teagasc reported a 69% reduction in dairy farmer incomes in 2023.
• New environmental regulations expected to impact herd sizes to reduce nitrogen emissions.
• RDJ LLP tasked with addressing milk pricing issues with Kerry Creameries Ltd.
• Strategic shifts due to nitrate derogations prioritize dairy over beef production.
• Kerry Group forecasts EPS growth between 7% and 10% for 2024.
• Launch of Kerrygold Butter Blends with new flavors.
• Lakeland Dairies introduced a fixed milk price strategy for 2025.
• Historic property ownership transition from Kerry Dairy Ireland to St Joseph’s Foundation.
• ICMSA urged co-operatives to raise milk prices following a market rebound.
• Kerry Group's €500 million stake sale to Kerry Co-Operative Creameries.
• Bord Bia secured a €3.2 million contract to promote EU dairy in Asia.
• Lakeland Dairies' appeal recognition of the dairy industry's economic importance.
• Over 200 shareholders discussed Kerry Co-op’s acquisition strategy.
• Teagasc National Dairy Conference examined current industry challenges and opportunities.
• ICMSA recommended year-end bonuses for suppliers due to favorable market conditions.

Challenges and Opportunities

Ireland's dairy industry navigates pricing dynamics and environmental regulations, while capitalizing on opportunities through international expansion and product innovation. The strategic measures, in response to European milk shortages, reinforce innovation and extend market reach to ensure sustainable growth. Efforts are in place to prevent Bluetongue’s entry into Ireland. The transition by Michael Finegan from traditional dairy farming to goat milking facilitated the establishment of Boyne Valley Farmhouse Cheese in Co Meath. Meanwhile, Kerry Dairy Ireland announced a payment of 53.5c/L for milk delivered in January, marking an increase from previous months. Butter, accounting for 25% of Ireland's dairy exports, enjoys a robust market, particularly among U.S. consumers. The completion of Kerry Group and Kerry Co-op's deal has also generated significant wealth for farmers in Ireland.

Modified: 2025/03/04

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