Among the strengths of the Irish dairy industry identified in the report are our low-cost grass-based production system and our low-carbon and sustainability credentials. We have a reputation for food safety and have access to 130 export destinations. In anticipation of and since the end of quotas, investment has been ongoing in both processing and on-farm and Irish dairying is underpinned by superb research capability. Our green sustainable systems create branding opportunities as market opportunities continue to emerge in developing nations.
However, despite recent investment, we still have comparative lack of scale in processing and are dependent on commodity production mix. Lack of available land restricts on-farm expansion, as does available skills across the production chain. While our utilisation of grass is a strength, its downside is that it leaves us with pronounced seasonality in our production.
The threat of animal disease always hangs over the sector and dairy products are also always exposed to potential food safety issues. Availability of raw material is always a concern and extreme price volatility is a threat to the sustainability of Irish dairying. Also, the issues of carbon footprint always hang over the industry.
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