Irish dairy farmers could be “innocent victims” of a potential trade dispute between China and the EU, according to the Irish Farmers' Association (IFA).

It comes after the announcement by China that it is commencing an anti-subsidy investigation into dairy products coming from the EU.

According to Bord Bia, Irish dairy exports to China in 2023 were valued at around €420m, making up 7% of total global dairy exports.

Responding to the announcement, IFA president Francie Gorman said it’s “critical” that the EU ensures that Irish dairy farmers are not the “fall guys” in any trade dispute with China.

“Irish dairy farmers already suffered from trade tariffs in 2019 following the EU-US trade dispute. That outcome has to be avoided this time around,” he said.

Cheese exports

The investigation by China’s ministry of commerce will focus on cheese and some fresh milk export products.

The IFA believes this will affect Irish farmers less, as cheese products make up a relatively small portion of overall Chinese exports.

“Dairy farmers have put down an incredibly difficult 12 months. International dairy markets are now performing well, which has driven a recent, and much-needed, lift in milk price,” Gorman added.

“Minister [for Agriculture Charlie] McConalogue is leading a trade mission to China at the end of the month. It is critical that he uses this opportunity to assure Chinese officials that our dairy products are not in breach of WTO [World Trade Organisation] rules and should not be unfairly treated from a tariff perspective.”