Ireland's Dairy Industry Overview in 2024
Ireland is renowned for its premium dairy products, thanks to its lush green pastures and temperate climate, which create 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.
Conclusion
Ireland's dairy industry is set for robust growth and continues to significantly contribute to the EU market supply, with a strong international market presence. Innovation and sustainability efforts remain pivotal as the industry addresses challenges and leverages new opportunities. 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.
Modified: 2025/10/09