The outbreak of foot-and-mouth disease (FMD) on a farm in Germany could give a price boost to Irish dairy powders, according to the CEO of Lakeland Dairies Colin Kelly.

The outbreak has triggered fear among some buyers of German dairy products, Kelly said.

He said that the chocolate sector may look to different suppliers as it awaits clarity on the FMD situation, Kelly told an IFA meeting in Cavan on Tuesday.

“They are a big skimmed and whole milk powder producer, so we will be looking at the big chocolate manufacturers across Europe if they are used to taking powder from Germany but they aren’t doing it any more.

“Does that create an opportunity for us - and I think absolutely it does,” he told the meeting.