Ireland's Dairy Industry Overview 2024

Ireland is celebrated worldwide for its premium dairy products, primarily due to its unique climate and lush pastures that provide ideal conditions for dairy farming. As a significant player in the global dairy market, Ireland's contributions are diverse and noteworthy.

Dairy Cattle and Milk Production

Home to approximately 1.5 million dairy cattle, Ireland produces around 8.3 billion liters of milk annually. This substantial production underlines Ireland's pivotal role in meeting international dairy demands.

Milk Processing and Cheese Production

Ireland boasts remarkable milk processing facilities with an annual capacity of 7.9 billion liters. The country also produces approximately 250,000 metric tons of cheese and 300,000 metric tons of milk powder and whey each year, illustrating its diverse dairy product range.

Key Dairy Enterprises

• Ornua: Known for marketing and exporting Irish dairy products globally.
• Kerry Dairy Ireland: Renowned for comprehensive milk processing and cheese production.
• Glanbia Ireland: Specializes in cheese and whey production, among other dairy products.
• Dairygold: A leading cooperative involved in dairy farming and exports.

Notable Dairy Farms

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

Export and Import of Dairy Products

With exports of about 1.4 billion liters of milk equivalent annually, Ireland's main markets include the EU, US, and Asia. Imports remain minimal at around 100 million liters of milk equivalent per year.

Recent Developments and Market Events

• Cesar França's appointment as Global Foods Division Managing Director at Ornua.
• Stabilization of raw milk prices following a surge in June 2023.
• Kerry Dairy Ireland set the June milk price at 42.5 cents per liter, reflecting market conditions.
• Teagasc reported a 69% reduction in dairy farmer incomes in 2023.
• New environmental regulations anticipated to affect herd sizes to reduce nitrogen emissions.
• RDJ LLP appointed to address milk pricing issues with Kerry Creameries Ltd.
• Strategic shifts due to nitrate derogations prioritize dairy over beef production.
• Kerry Group forecasts a 7%-10% EPS growth 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.

Challenges and Opportunities

The Irish dairy industry is navigating pricing dynamics and regulatory changes while seizing global expansion opportunities through innovation. Strategic responses to European milk shortages are extending market reach and promoting sustainable growth. Efforts to prevent Bluetongue from entering Ireland are ongoing.

Mike Finegan's transition to goat milking marked the beginning of Boyne Valley Farmhouse Cheese. In January, Kerry Dairy Ireland announced a significant milk payment increase to 53.5c/L. Butter, representing 25% of exports, remains highly favored, especially in the U.S. Kerry Group's substantial transaction notably increased farmer wealth amid a 2% reduction in dairy cow population by December 2024, prompting strategic adjustments.

Survey outcomes suggest that Irish dairy farmers might reduce cattle numbers if Nitrates Derogation concludes. Methane emissions present challenges, triggering collaborative research for sustainable solutions in dairy and beef sectors. Market shifts raise prices for weanling bulls and store cattle at Irish marts.

Scheduled for a US trade mission, Irish Agriculture Minister Martin Heydon will meet where 770 Irish firms employ 200,000 people. U.S. butter imports have surged from 10.2 million pounds in 2010 to 172.6 million pounds in 2024, increasingly favoring Irish butter for its superior butterfat content.

Innovative projects and increases in solar adoption, such as Greenhills Farm's partnership with Ørsted on a 250 MW solar project to power 52,000 homes, highlight sustainability initiatives. Rising production costs force Irish dairy farmers to elevate consumer prices, reflecting broader industry pressures. The Munster Dairy Producer Organisation calls for Kerry Dairy Ireland and Kerry Co-op to honor top milk price payments for 2024. Ireland is on track for a strong season, contributing to additional supply flowing into the EU market.

The Irish government has begun issuing €4.73 million to 7,612 farmers as part of the new Dairy Beef Welfare Scheme, aiming to improve dairy herd welfare. The 29th edition of the British & Irish Cheese Awards emphasized the high standards of UK and Ireland cheesemakers.

Upcoming Events

Ireland: 3rd Annual National Dairy Awards Announced for 2025 Irish butter brand Kerrygold and the broader dairy industry are under pressure as new U.S. tariffs threaten exports.

Modified: 2025/04/04

---