8% dairy exports boost

The value of Irish dairy exports has been boosted 8% by weakening of the euro.

However, it is likely to take some time before any such currency-related benefit may be fully realised, according to Bord Bia chief executive Aidan Cotter.

Other factors such as availability, demand developments and the level of competition from other suppliers, also influence potential returns, but the 14% weakening against the US dollar and 7% against sterling would be worth 8% — if all other factors were equal.

Euro weakness boosts the competitiveness of the 45% of dairy exports destined for international markets which predominantly trade in US dollars, and a further 27% destined for the sterling area.

This helps to offset some of the decline in global dairy prices.

The euro weakening against other leading export regions such as the US, New Zealand and Australia helps to drive the relative competitiveness of European dairy products on world markets.