An Analysis of the Irish Dairy Sector Post Quota
Type Report
The research finds Irish dairy farmers enjoy the best net profit margins by a considerable distance, according to the most recent data from FADN for the period 2014–2017. During this period the average net margin (excluding owned labour) in Ireland was 8 cent per litre versus 4.6 cent per litre for the UK, 3.6 cent for the Netherlands, 2.7 cent for Germany, 2.5 cent for France, and minus 1 cent for Danish farmers.
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This research compares the performance of the Irish dairy industry post milk quota removal against a number of leading processors in key EU dairy producing countries – Denmark, Germany, the Netherlands, France, and the United Kingdom (UK), as well as New Zealand with reference to farm gate milk price, investment, seasonality, costs of production and farm profitability. The analysis is based on milk prices published by the LTO international milk price review, costs of production as published by the Farm Accountancy Data Network (FADN), other published studies, and Irish milk processor data.
- The research finds Irish dairy farmers enjoy the best net profit margins by a considerable distance, according to the most recent data from FADN for the period 2014–2017. During this period the average net margin (excluding owned labour) in Ireland was 8 cent per litre versus 4.6 cent per litre for the UK, 3.6 cent for the Netherlands, 2.7 cent for Germany, 2.5 cent for France, and minus 1 cent for Danish farmers.
- Irish dairy farmers also enjoy the lowest production costs by a wide margin. The FADN data puts Irish production costs (excluding owned labour) at 24 cent per litre as opposed to 38 cent for Denmark, 35 cent for the Netherlands, 33 for France, 32 for German, and 30 for the UK.