Forum addresses future of dairy industry

The dairy industry forum in Portlaoise was described by Agriculture and Food Minister Joe Walsh yesterday as extremely useful.

He said it would help in working towards a shared vision of the future for the Irish dairy industry.

Mr Walsh said a number of action points had been identified which would now be worked on by the relevant parties.

The forum was attended by leaders of the dairy industry and farm organisations as well as by representatives of Teagasc and Enterprise Ireland.

Mr Walsh said the purpose was to take stock of the challenges facing the Irish dairy sector.

He said the timing was apt in view of the recent completion of the Mid Term Review which provides a clear and definite EU support framework for the dairy sector for the next ten years.

At farm level, the need and the potential for achieving efficiencies in terms of reduced production costs and improved milk composition was addressed. The need for increased scale and quota size at farm level was also identified as a requirement for the future. This in turn pointed to a need to re-examine the way in which quotas are redistributed in Ireland.

The forum heard there is a clear disparity between the highest and lowest cost milk producers which warranted attention in view of a more competitive market.

The challenges facing the dairy processing sector, as identified by the Prospectus report, were also considered by the forum.

These include the need to increase scale and reduce costs in order to position the industry to withstand international competition and increase penetration of high value EU consumer markets.

Ultimately, the Irish consumer will benefit from an industry that is competitive and engaged in developing new products, Mr Walsh said.

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