Ireland's Dairy Industry Overview

Ireland is globally recognized for its superior quality dairy products, with its lush green pastures and ideal climate providing an excellent environment for dairy farming. This has positioned Ireland as a critical player in the global dairy market.

Dairy Cattle and Milk Production

Ireland is home to approximately 1.5 million dairy cows, producing about 8.3 billion liters of milk annually. This substantial production underscores Ireland's role as a significant contributor to the global dairy market.

Milk Processing and Production

The country's milk processing capacity is approximately 7.9 billion liters per year. Ireland produces an impressive 250,000 metric tons of cheese annually, alongside milk powder and whey production of about 300,000 metric tons each year.

Key Dairy Enterprises

• Ornua: A well-known dairy co-operative that markets and exports Irish dairy products worldwide.
• Kerry Dairy Ireland: Known for its extensive milk processing and cheese production.
• Glanbia Ireland: A major milk processor that produces cheese, whey, and other dairy products.
• Dairygold: A leading co-operative focused on dairy farming, processing, and exporting.

Significant Dairy Farms

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

Export and Import of Dairy Products

Ireland is a major exporter of dairy products, with exports reaching approximately 1.4 billion liters of milk equivalent annually, focusing primarily on the EU, US, and Asian markets. Imports remain minimal, approximating 100 million liters of milk equivalent each year.

Recent Events in the Irish Dairy Market

• Ornua appointed Cesar França as Managing Director of its Global Foods Division.
• Raw milk prices stabilized after a significant increase from June 2023 levels.
• Kerry Dairy Ireland set the June milk price at 42.5 cents per liter amid variable market conditions.
• Teagasc reported a 69% drop in dairy farmer incomes in 2023.
• Efforts to reduce nitrogen emissions may impact herd sizes as environmental measures intensify.
• RDJ LLP was appointed to address milk price issues with Kerry Creameries Ltd.
• Nitrate Derogations encourage prioritizing dairy over beef production.
• Kerry Group forecasts an adjusted EPS growth between 7% and 10% for 2024.
• Kerrygold launched Butter Blends featuring new flavors.
• Lakeland Dairies established a fixed milk price scheme for 2025.
• Kerry Dairy Ireland transferred ownership of a historic building to St Joseph’s Foundation.
• The ICMSA urged co-ops to raise milk prices in October following a market upswing.
• Kerry Group reached an agreement to sell its stake to Kerry Co-Operative Creameries for €500 million.
• Bord Bia secured a €3.2 million contract to promote European dairy in Asia.
• Lakeland Dairies called for recognition of the dairy sector's economic contribution by politicians.
• Over 200 shareholders met to discuss Kerry Co-op’s acquisition proposal.
• The Teagasc National Dairy Conference discussed the industry's challenges and opportunities.
• The ICMSA advocated for end-of-year bonuses for milk suppliers.

Challenges and Opportunities

Ireland's dairy sector faces challenges such as pricing dynamics and environmental regulations but continues to leverage opportunities in international market expansion and product innovation. European milk shortages are prompting strategic adaptations, helping drive innovation and market expansion. According to Ireland’s Central Statistics Office (CSO), dairy product prices increased in November compared to the previous year. Kerry Dairy Ireland announced a price increase for November milk supplies effective December 13. The quality of Irish dairy cattle is globally competitive, with CSO data indicating a 42% increase in dairy cow numbers over the last decade. The pig feed sector in Ireland is predicted to recover modestly, with a projected 3% increase. Kerry Dairy Ireland processes over 1.1 billion liters of milk annually from 2,740 family farms across Munster. Ireland recorded the largest milk price increase in the European Union in 2024, according to a Eurostat report. Reduced nitrate derogation in Ireland has led to a shift, with reductions in the beef herd aimed at preserving dairy operations. Kerry Dairy Ireland has long been a cornerstone of the region’s dairy industry. Danone's Belgian investment firm Standing Ovation received public sector funding to increase production of animal-free casein. Ireland has made significant gains in milk prices, climbing from the lower ranks of the EU milk price league in 2023 to surpassing the EU average in 2024. Bord Bia projects a steady dairy export value of €6.3 billion for 2024, maintaining levels from the previous year. A significant global shortage in butter supply has driven up prices, prompting a boost in dairy exports, according to Bord Bia.

Modified: 2025/01/15

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