Ireland's Dairy Industry Overview in 2024

Ireland is renowned for its premium dairy products, thanks to its lush green pastures and temperate climate, creating an ideal environment for dairy farming. In 2024, Ireland continues to demonstrate its significance in the global dairy sector with impressive production and export figures.

Dairy Cattle and Milk Production

As of 2024, Ireland is home to approximately 1.5 million dairy cattle. This substantial livestock population supports an impressive milk production volume of about 8.3 billion liters annually, underscoring 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, highlighting a diverse portfolio of dairy products.

Key Dairy Enterprises

Prominent companies in Ireland's dairy sector include Ornua, known for marketing and exporting Irish dairy products worldwide; Kerry Dairy Ireland, specializing in milk processing and cheese production; Glanbia Ireland, focused on cheese and whey production; and Dairygold, a leading cooperative involved in dairy farming and exports.

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 in Ireland's dairy industry 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. Kerry Dairy Ireland set its June milk price at 42.5 cents per liter and announced a milk payment increase to 53.5 cents per liter in January 2024. Lakeland Dairies has set the milk price for July at 48.25c/l (3.6% butterfat and 3.3% protein), including a 0.5c/l Sustainability Incentive Payment.

Challenges such as pricing dynamics and regulatory changes are present, but there are opportunities for global expansion through innovation. Sustainability efforts include Greenhills Farm's collaboration with Ørsted on a 250 MW solar initiative. Rising production costs have led to increased consumer prices. A potential €1.5 billion economic loss looms if Ireland loses its nitrates derogation, which allows higher stocking rates.

Concerns mount in the Irish dairy sector as a potential trade agreement between the European Union and the United States looms. The depreciation of the US dollar and a 15% tariff pose a threat to Irish dairy exports. Import restrictions due to the bluetongue virus have thwarted efforts to purchase replacements from Britain, forcing the farm to seek alternatives from Ireland.

A significant issue is brewing in the Irish agribusiness sector regarding the bovine tuberculosis (TB) compensation scheme. The compensation ceilings, last updated in February 2023, fail to reflect current market conditions, leading to financial losses for farmers whose cattle are culled.

Lidl has announced it will be the first retail chain in Ireland to reduce milk prices in over two years, specifically targeting its own range of 12 milk products. Hallow Holsteins, an award-winning Irish dairy farm, leverages North American genetics to boost milk production and global livestock sales. The success of Hallow Holsteins, a 100-cow pedigree herd in Wexford, Ireland, highlights the global impact of North American dairy genetics. The farm prioritizes cow type and conformation traits necessary for high milk production.

Aldi and Lidl are engaging in price wars in Ireland. Aldi has decided to match Lidl's price cut on milk in Ireland, marking a strategic move amid rising living costs. The Irish Creamery Milk Suppliers’ Association criticizes milk price reductions. These reductions by leading retailers are said to disproportionately affect dairy farmers' margins in Ireland.

The study on technology investment was led by Conor Hogan, Dairy Programme Manager at Teagasc Moorepark, Ireland. Dairygold, an Irish cooperative, has announced a major correction in its milk price. Dairygold is responding to a catastrophic collapse in the market for butter and cheddar, with significant price decreases.

According to the Irish Farmers Journal, the price of butter has dropped. The Irish Farmers Journal reports a significant price drop in butter, marking its lowest level in two years.

Modified: 2025/10/27

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