The Kerry Dairy Ireland CEO has said that consolidating processing assets should be considered to optimise Ireland’s milk processing sector over the next decade. This was an element of Pat Murphy’s outlook for Irish dairy farmers and the wider dairy sector for the next 10 years.
The Kerry Dairy Ireland CEO has said that consolidating processing assets should be considered to optimise Ireland’s milk processing sector over the next decade.
This was an element of Pat Murphy’s outlook for Irish dairy farmers and the wider dairy sector for the next 10 years.
He also said that to enhance operational efficiency and improve asset utilisation, Kerry must focus on maximising the use of its physical infrastructure such as spray dryers, beyond the traditional peak milk season of March to October.
Speaking to the Irish Farmers Journal, Murphy said that these changes at a processor level could benefit its milk suppliers.
“Strategic consolidation of processing assets should be considered to ensure optimal utilisation and achieve efficiencies of scale, particularly in commodity production.
“By streamlining operations and reducing redundancy, we can drive greater productivity, cost-effectiveness and competitiveness, benefiting both the business and our milk suppliers.”
Milk production
To ensure a resilient and sustainable future, Murphy said that the Irish dairy industry must prioritise “value add over volume growth”.
“Competing in global commodity markets presents increasing challenges, and long-term success will depend on differentiating Irish dairy through premium, high-value products that command better market returns,” he said.
He also emphasised the importance of improving Ireland’s sustainability.
“Ireland’s dairy sector holds a unique position globally as a premium source of high-quality dairy, underpinned by our grass-fed production system,” added Murphy
“By investing in innovation and sustainability, we will further differentiate our products, meet evolving consumer demands and solidify Ireland’s reputation for sustainable dairy excellence.”
Looking ahead, Murphy said that Kerry expects that milk volumes in 2025 will be slightly ahead of 2024 but lower than 2022. “Encouragingly, this year has started with favourable weather, providing good early-season conditions for milk production.”
Carbery
Meanwhile, Carbery CEO Jason Hawkins said that continuing to produce high quality dairy products needs to be balanced with ensuring responsible management of the environment.
“We have seen significant strides by farmers and industry in this area in recent years,” he said.
Hawkins said he believes that responsible farming practices, technology and innovation, along with methane emissions solutions and a focus on regenerative farming, can ensure that Ireland remains both productive and environmentally responsible.
“A fair model for how these technologies and innovations are funded is crucial to ensure a successful future for farming,” he added.
The Carbery boss believes that demand for high quality protein will continue.
“With a growing global population and as the middle class expands in developing countries, demand for high quality proteins will continue to grow.
“This, combined with longer life spans and more active lifestyles generally, will also drive demand.”
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