Joe Dermody: Dairy expansion is a fine balancing act of risks and benefits

Farmers can expect this year’s low milk price to recover in the longer term, said economic consultant Dr Michael Keane.

“There is a short term decline in the milk price,” said Dr Keane, co-author with Cork Institute of Technology maths lecturer Dr Declan O’Connor of the report, ‘Future Expansion of the Dairy Industry in Cork’.

”This is part of the extreme volatility that has been experienced in the market over the last decade due to changes in policy. Our analysis suggests this decline is going to be short term. That was the case with the low milk price in 2009, which was followed by a good year in 2010, and arguably the best year ever for dairy in 2011.”