Dairy Industry in Ireland: 2024 Overview

Ireland's dairy industry is a cornerstone of the national economy, renowned for producing premium dairy products, thanks to the country's lush green pastures and temperate climate.

Dairy Cattle and Milk Production

Ireland is home to approximately 1.5 million dairy cattle, with an impressive annual milk production of about 8.3 billion liters. The peak production reached 8.8 billion liters in 2025, supported by favorable grass growth conditions which are critical for milk yield.

Milk Processing and Cheese Production

Advanced milk processing facilities in Ireland handle around 7.9 billion liters of milk annually. The country’s cheese production is robust, with an output of approximately 250,000 metric tons annually. Diversity in dairy products is also highlighted by the production of around 300,000 metric tons of milk powder and whey each year.

Key Dairy Enterprises

Prominent companies such as Ornua, Kerry Dairy Ireland, Glanbia Ireland, and Dairygold play instrumental roles in the sector, engaging in processing, marketing, exporting activities, and cheese production.

Export and Import of Dairy Products

Ireland exports about 1.4 billion liters of milk equivalent annually, focusing on markets in the EU, US, and Asia, with an export value approximating €6 billion per year. Imports are relatively low, at around 100 million liters of milk equivalent, reflecting a strong export orientation.

Recent Developments and Market Events

Recent developments include stabilized raw milk prices after a surge in mid-2023, and leadership changes like Cesar França's appointment at Ornua. In 2024, Kerry Dairy Ireland increased milk payments to 53.5 cents per liter, while Lakeland Dairies set their July price at 48.25c/l. Sustainability initiatives are progressing, such as Greenhills Farm's solar project partnership with Ørsted. Challenges arise from potential economic impacts of losing the nitrates derogation and trade dynamics pressured by potential EU-US agreements. Retail dynamics are shifting, influencing farmers' margins, as seen in milk price wars between Lidl and Aldi.

Technological advancements and sustainability efforts are evident in Danone's Wexford facility's transition to renewable energy and research on reducing livestock methane emissions. The Bord Bia audit underscores Ireland's commitment to sustainability, while legal challenges related to the nitrates derogation affect over 5,000 farmers.

In 2025, dairy exports reached €7.3 billion, with strong performances in Europe, the UK, and North America. The Irish Cattle Breeding Federation focuses on data-driven strategies for 2026, and Animal Health Ireland collaborates on calf rearing practices. Financial strains are prevalent as farmers produce milk below cost, with substantial government allocations for bovine tuberculosis action plans.

Danone expanded its recall of infant formula due to contamination concerns, and farmers face significant financial losses from milk price declines. Structural changes are underway, with milk production expected to decrease by 5% between 2025 and 2030, though the grass-based, export-focused model of Ireland is well-positioned for future growth.

Initiatives like mapping milk vending machine locations aim to boost local consumption, while participation in International Farmers Day fosters global exchanges. Demand for freshly calved heifers remains strong, achieving premium prices. Kerry Dairy Ireland introduced a wellbeing program for its suppliers, and campaigns emphasize culinary traditions associated with Kerrygold's grass-fed butter.

Research collaborations with New Zealand have found lower methane emissions from grazing cows. A proposed merger between Dale Farm and Aurivo was abandoned, preserving their independent operations. Lidl Ireland reduced prices on own-label milk and butter, supporting local producers, although price cuts have sparked concerns among farmers about profit margins.

The sector aligns with new EU milk supply rules, ensuring contract stability, and the government allocated €30 million towards the Shared Island Enterprise Scheme for sustainable enterprise. Ireland produces over 10% of the global infant formula supply, illustrating its significant contribution to the global market.

Sainsbury's £5 billion farming investment includes dairy sectors in Ireland, while Tirlán invests €126 million in a new whey processing plant. Ireland's bovine tuberculosis control plan has drawn criticism, highlighting tensions in disease management policies. Irish farmers are requesting increased government assistance for bluetongue vaccinations as the risk season approaches.

In February 2026, major co-operatives decided to maintain milk price stability with minimal reductions and bonus payments to suppliers, supporting farmers amidst fluctuating market conditions. Wet weather conditions have forced 70% of farms to move cows indoors, impacting grazing practices.

Aurivo's investment in a biomass system supports regional sourcing and Ireland's low-carbon economy transition goals. Dairy farming continues to play a critical role in the Irish economy, with dairy processing seeing a rise in greenhouse gas emissions, contrasting with decreases from the country's largest polluters. Gas use in the agri-food sector increased significantly, driven by dairy sector demands during the spring.

Ireland's dairy sector experiences a boost in whey protein demand, attributed to the rising use of GLP-1 weight-loss medications. Danone is expanding operations in Macroom, creating new jobs with Ireland's first liquid medical nutrition facility. Lakeland Dairies set a base milk price with a sustainability incentive, and the rebranding of Kerry Dairy Ireland to Kinisla was announced, along with a substantial investment plan.

Recent high temperatures have led to heat stress in monitored dairy cows, impacting production. The sector is intensifying efforts in Asia's growing market for functional nutrition, leveraging its reputation for grass-fed production systems and sustainability. Irish dairy farmers are advised to consider AI breeding cut-off dates as production fell slightly compared to a particularly strong previous year.

Dale Farm, one of the largest cooperatives, is expanding commercial operations, supported by dairy farmers across the region. Glenisk, an organic dairy brand, issued an international recall, and approximately 26% of dairy herds defaulted to the highest nitrogen excretion rate band due to missed declaration deadlines.

Kinisla leverages Irish dairy strengths amidst market challenges, focusing on its grass-fed milk credentials and sustainable heritage, while the sector faces challenges like rising energy costs and declining milk prices, prompting calls for government intervention.

AgriOpinions is conducting an independent survey to assess the perspectives of dairy farmers in Ireland on the support provided by key industry organizations.

Modified: 2026/05/29

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