Dairy farms will need price shock insulation

Greater demand for dairy products provides a real opportunity for the Irish dairy industry to establish itself as a world leader in the supply of high quality dairy products, underpinned by the unique advantages of our grass-based production system, says Pat Dillon, Head of the Animal and Grassland Programme with Teagasc.

In the latest edition of the Moorepark News report on research, technology and innovation for the dairy industry, he says global demand for dairy produce is growing at a rate of 2.5% per annum. This is fuelled by increasing demand from more affluent consumers in key developing markets in Asia and Africa.

The economic benefits of a growing dairy sector are already evident. Dairy product and ingredient exports grew by an estimated 15% to exceed €3 billion for the first time in 2013.