Demand for Irish sheep milk products growing but supply challenges remain
There is a "significant opportunity" for the Irish sheep sector to begin sheep milk production at scale.
Farmers are being recruited for 2024 to supply sheep milk for manufacturing as the export demand for Irish sheep cheese grows.
Sheep Milk Ireland director Brendan Crosse has said that the suppliers of sheep milk products currently face "fundamental supply challenges".
Sheep Milk Ireland is Ireland’s leading sheep milk producer, based in Cashel, Co Tipperary.
Mr Crosse said that there is an immediate demand for around 5,000 metric tonnes of Irish sheep cheese globally, which would equate to approximately 110,000 sheep.
"We have identified a market opportunity with one of Ireland's dairy co-ops and will begin exporting a product in the second half of 2023," Mr Crosse said.
In order to help them meet export demand and allow for efficient manufacturing, the business will be importing sheep milk.
However, they are recruiting four farmers for 2024 in Ireland, "and we have farmers contacting us weekly looking to start", Mr Crosse said.
The dairy industry in Ireland processes 1m or sometimes 2m litres of milk per day, Mr Crosse told this week's Oireachtas Joint Committee on Agriculture, Food and the Marine.
"To get into those plants, we need to be delivering at least a tanker of milk to justify a couple of hours of production. Unfortunately, the smaller guys are probably handling 500,000 litres over a year," he said.
"Therefore, for us to produce an ingredient product we know we can scale, we need to be efficient in manufacturing. To do that, we need to put volume together at the start and, hopefully, by the expansion and entrance of new farmers into Ireland, we can displace that imported milk quite quickly."
Mr Crosse told the committee that it had been "kept low key" with regard to recruiting farmers initially, "because we were trying to be certain that we had a route to market".
"Now, however, the pathway is much clearer and the profitability potential in sheep milk farming has made people be more proactive in terms of looking at different ways to make an income from their farm."
'Significant opportunity'
Mr Crosse told the committee that there is a "significant opportunity" for the Irish sheep sector to begin milk production at scale.
"The support of the Government is essential for maximum impact," he said.
Some 45% of the world's sheep milk is produced around the Mediterranean basin in countries such as Spain, France, Italy, Greece, and Turkey, Mr Crosse explained.
"There is a growing demand for premium alternative dairy products across the world. The main export markets for sheep milk cheeses are the US, the UK, and Germany. These are markets where Ireland is already particularly strong," he told the committee.
New Zealand has recognised the opportunity for sheep milk production, Mr Crosse said, and in recent years, it has invested in and co-ordinated the expansion of the industry.
"This will improve the viability and resilience of the entire sector," Mr Crosse said.
"New Zealand has a target of $750m in exports by 2035. There is no reason Ireland cannot have similar ambitions, particularly with its environmental credentials.
"Having started from a similar sized base as Ireland, New Zealand sees it as its next billion-dollar exporting industry. New Zealand's findings, in a similar production system to Ireland's, show that the income potential for sheep milk production is comparable with dairy cows but with significantly less up-front capital investment, making it feasible for farmers on smaller landholdings."
Sheep Milk Ireland is investing in the development of a demonstration farm, which will showcase an efficient farm with a top-class rotary parlour and feeding systems, Mr Crosse told the committee.
"When the demonstration farm is operational, we will also be having an open day for interested farmers. All work to date has been completed with private funding, with minimal supports from Government agencies," he added.
