Processors plan to invest circa €875m in capital projects over the next five years.
A new report that highlights the “substantial economic contribution, global market potential, and commitment to sustainable practices” of the dairy industry has been published.
Unveiled by Dairy Industry Ireland (DII), the report titled ‘Economic Contribution of the Dairy Processing Industry to the Irish Economy and Processor Forecasts to 2030’ was compiled by EY and has been submitted to the Government for their consideration.
Historically recognised as a rural economic powerhouse, Ireland’s dairy sector has evolved into a “remarkable contributor” to the nation’s economy, with €17.6bn in economic value generated in 2022 alone, the report found.
Although the industry has experienced significant volume-based growth in the past, the report emphasises that future progress “will be driven by enhanced efficiencies, reaffirming the industry’s dedication to sustainability and environmental stewardship”.
The report emphasises that all facets of the industry are investing in technology and process enhancements to fulfil environmental responsibilities.
Director of DII Conor Mulvihill said that despite facing recent adversities such as the covid pandemic, the Ukraine energy crisis, and Brexit, the Irish dairy sector “has exhibited exceptional resilience”.
“In 2022, it generated a remarkable €17.6bn in economic output for the nation’s economy, with this output predominantly concentrated in rural areas and supporting nearly 54,000 full-time equivalent jobs,” Mr Mulvihill added.
The report found that the era of rapid dairy growth is at an end with the industry forecasts aggregated by EY showing a +0.6% compound annual growth rate (CAGR) to 2030.
Given that over 90% of Irish dairy is exported, growth in international sales will likely moderate in the coming years based on this CAGR expectation.
Processors plan to invest circa €875m in capital projects over the next five years, according to the report.
This investment is expected to support milk processing, environmental management, and other factors (including maintenance and efficiency improvements to existing facilities).
