IFA warns dairy expansion will require €1.5bn on-farm investment

Expanding Irish dairy output by 50% for the 2015 post-quota era will require €1.5bn in on-farm investment, making it impossible for farmers to fund new processing costs, according to the IFA.

National dairy committee chairman Kevin Kiersey said the dairy sector is on the cusp of a great opportunity. “Despite the current economic and financial uncertainties, global demand for dairy products is rising rapidly, especially in emerging and developing countries which will be unable to supply their own needs for the foreseeable future.

“Recent reports by market analysts including Rabobank have stated that the lowest cost regions such as New Zealand, Australia and parts of South America would not fulfil these rapidly rising needs. It is clear that there are exciting prospects ahead for our industry, and Irish dairy farmers are chomping at the bit to avail of those opportunities.”