
Strong Gains Signal Recovery, But Trade & Green Rules Loom Large.
Irish milk production is demonstrating a strong and sustained recovery in 2025, rebounding significantly after an overall decline in 2024. Despite a -0.3% decrease in total production compared to 2023, the Republic of Ireland experienced substantial gains towards the end of last year, with volumes in Q4 2024 soaring 23.7% higher than the same period in 2023. This resurgence marks a pivotal moment for the nation’s dairy sector and its position in European dairy economics.
The recovery gained momentum from a combination of favorable conditions and strategic moves. An extended grazing period due to mild autumn weather notably improved yields per cow and helped reduce dairy farm production costs. Additionally, there was a discernible push in production ahead of new nitrate restrictions that were set to take effect in January 2025 for certain regions. These factors collectively fueled the impressive turnaround, with November 2024 recording a massive 34.4% year-on-year increase.
The positive trend has continued robustly into 2025. Following a minor dip in February, Irish milk production sharply increased by 8% in March, 13% in April, and 7% in May. Cumulatively, from January to May 2025, Irish output is now 7.6% above the same period in 2024 and even marginally higher (0.6%) than 2023 levels. This resurgence brings milk production back to volumes comparable to the strong performance seen in 2022.
Despite this impressive recovery, the Irish dairy sector faces persistent and evolving challenges. Increasing environmental regulations, particularly lower stocking rates due to nitrogen restrictions, remain a key concern for dairy farmers. Critically, Ireland stands as the only EU member actively seeking an extension of its nitrogen derogation beyond 2025, a measure deemed vital for the long-term viability and growth of its dairy industry.
Beyond domestic environmental hurdles, the Irish dairy export market faces international uncertainties. Potential US tariffs and an ongoing anti-dumping investigation by China into EU dairy imports, coupled with China’s expanding domestic dairy industry and reduced overall demand, pose significant risks. These global trade dynamics underscore the complex landscape Irish dairy producers must navigate even as their milk production recovers.
Source: AHDB: Irish milk production continues to recover
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