Ireland's Dairy Industry Overview

Ireland is globally renowned for its exceptional dairy products, supported by lush greenery and unique climatic conditions favorable for dairy farming. The nation is a pivotal player in the international dairy market, celebrated for its quality produce.

Dairy Cattle and Milk Production

Home to an estimated 1.5 million dairy cows, Ireland produces approximately 8.3 billion liters of milk annually. This production scale reinforces Ireland's significant contribution to the global dairy sector.

Milk Processing and Production

The country boasts a milk processing capacity of around 7.9 billion liters per year. In terms of product diversity, Ireland produces about 250,000 metric tons of cheese and 300,000 metric tons of milk powder and whey annually.

Key Dairy Enterprises

• Ornua: A renowned dairy co-operative recognized for its global marketing and export efforts of Irish dairy products.
• Kerry Dairy Ireland: Prominent for extensive milk processing and cheese production operations.
• Glanbia Ireland: A key player in the market known for producing cheese, whey, and various dairy products.
• Dairygold: A leading co-operative invested in dairy farming and exporting endeavors.

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 significant, totaling approximately 1.4 billion liters of milk equivalent each year, with primary markets including the EU, US, and Asia. The nation maintains minimal imports, roughly 100 million liters of milk equivalent annually.

Recent Events in the Irish Dairy Market

• Appointment of Cesar França as Global Foods Division Managing Director at Ornua.
• Stabilization of raw milk prices following a prior surge in June 2023.
• Kerry Dairy Ireland set a June milk price at 42.5 cents per liter, reflecting market conditions.
• Teagasc reported a notable 69% reduction in dairy farmer incomes in 2023.
• Prospective environmental regulations may influence herd sizes to curtail nitrogen emissions.
• RDJ LLP tasked with addressing milk pricing issues associated with Kerry Creameries Ltd.
• Strategy shifts due to nitrate derogations prioritize dairy over beef production.
• Kerry Group forecasts an adjusted EPS growth between 7% and 10% for 2024.
• Introduction of Kerrygold Butter Blends with new flavor offerings.
• Lakeland Dairies initiated a fixed milk price strategy for 2025.
• Ownership transition of a historic property from Kerry Dairy Ireland to St Joseph’s Foundation.
• Call by ICMSA for co-operatives to elevate milk prices post-market rebound.
• Kerry Group's decision to sell its stake to Kerry Co-Operative Creameries for €500 million.
• Bord Bia secured a €3.2 million contract to promote EU dairy in the Asian market.
• Recognition appeal by Lakeland Dairies of the dairy industry's economic significance.
• Over 200 shareholders convened to deliberate on Kerry Co-op’s acquisition modality.
• The Teagasc National Dairy Conference explored current industry challenges and prospects.
• ICMSA promoted year-end bonuses for suppliers post favorable market conditions.

Challenges and Opportunities

While Ireland's dairy industry navigates pricing dynamics and environmental regulations, it harnesses opportunities through international market expansion and product innovation. European milk shortages have stimulated strategic measures, enhancing innovation and extending market reach, ensuring sustained growth and industry contribution.

Modified: 2025/02/01

---