The €1.5 Billion Threat to Ireland’s Dairy Industry

A new economic report, created by Teagasc and the Irish Farmers’ Association (IFA), reveals a potential €1.5 billion economic loss for Ireland if the country loses its nitrates derogation. This derogation is a critical policy allowing Irish dairy farmers to maintain higher stocking rates. According to the report, the loss of this policy could result in up to a 22% reduction in the dairy herd, an 18% drop in milk production, and an average income decline of €10,000 per farm. Over a decade, such impacts could cost the national economy greatly. The report underscores the urgency of maintaining this derogation to safeguard Ireland's dairy economics and food supply chain.

Teagasc director Frank O’Mara highlighted the severity of these findings, reflecting a threatened future for the sector. Minister for Agriculture Charlie McConalogue emphasized the government's intent to use science-based policy to address the challenges posed by losing the derogation. Meanwhile, IFA President Francie Gorman called for a strong governmental message to the EU to avoid the economic repercussions on the country’s largest agribusiness sector.