'Good year for Irish dairy sector'

The Irish Dairy Board has described 2004 as a good year for the Irish dairy sector.

The board said today that the sector feared it would be harmed by EU enlargement last May and a 6% reduction in prices in July.

However, it said the strength of world dairy markets and lower EU milk production combined to offset these adverse factors.

Despite this, the Dairy Board has warned that 2005 could prove more difficult for dairy exports due to the weakening of the US dollar and a reduction in EU subsidies.