Dairy Sector

Vision for the Irish Dairy Sector

To be the world's most trusted exporter of sustainably driven and technically advanced high-quality dairy products to customers worldwide.

Overall performance

Irish dairy exports were estimated at €6.3 billion in 2024, which is in line with 2023. Over 1.6 million tonnes of products shipped to approximately 140 markets worldwide.

2024 milk collections in Ireland fell to approximately 8.3 billion litres, a decline of approximately 2.5% on 2023 levels . This is the second-year Irish milk supply has declined since milk production quotas were lifted in 2015. Challenging weather in the spring and summer months limited grass growth during the critical ‘peak milk’ period and hampered production.

According to Eurostat, EU butter prices exceeded €7,800 per tonne in October 2024, while averaging €6,360 per tonne for the year to date. This was a sharp improvement to the average monthly price achieved in 2023  of €4,820 per tonne.

2024 was a year that gathered momentum as it progressed. The disappointment of a poor peak production period was somewhat alleviated in the late summer and early autumn as growing conditions and markets improved to deliver value back to farmers and processors.

Trends by top key products

Prospects for 2024

Uncertainty around the future of the nitrates derogation affects the  mapping of potential milk production in Ireland.

The CSO reports that the size of the national dairy herd declined by 1.2%, or 22,000 head, between June 2023 and June 2024. The strong prices available in the second half of 2024 and the longer grazing season may, however, have slowed this trend into 2025

Demand in Europe has been a key influence on Ireland’s export performance in recent years with regional self-sufficiency remaining a key focus. The European Commission predicts that dairy cow numbers in Europe will decline marginally in 2025, but that higher yields will help maintain volumes.

There is no doubt that challenges in global markets may create supply opportunities for Irish dairy, with potentially higher demand for sustainability credentials from ‘Blue Chip’.

However, several factors may constrain growth. These include the trading uncertainty with a new administration in the US, the ongoing uncertainty around Chinese demand and its impact on global markets, and the lack of clarity regarding potential changes to the nitrates derogation in Ireland.

On a positive note, the diversified nature of the Irish dairy industry in terms of product output and markets served - not to mention its agility and sustainable credentials - positions it well to navigate these factors and ensure that 2025 delivers commercially and environmentally, for both farmers and processors.