Dairy Industry Ireland (DII), the Ibec body that represents the dairy processing sector, has welcomed the confirmation of Ireland's nitrates derogation for a further three years.

However, Conor Mulvihill, DII's director, called for any new regulation tied to the derogation to be fair and balanced.

DII welcomed the EU Nitrates Committee’s unanimous decision to extend the application of Article 9 of the Nitrates Directive to Ireland.

According to the industry body, the decision is a "clear recognition of the progress Irish farmers, government and industry are delivering on water quality and of the unique sustainability of our grass-based family farm model".

DII said the decision provides "much needed certainty" for farm families, processors and communities, and it averts economic shock for the dairy industry.

Previous analysis carried out by EY for DII showed that the loss of derogation could have cost the Irish economy €45 billion over the coming decade.

"This is a good day for Irish grass-based farming, generational renewal, and for our native economy," Conor Mulvihill said.

"The extension rewards real environmental performance, protects jobs and exports, and gives farm families confidence to keep investing and planning for the next generation," Mulvihill added.

The DII director said that Irish agriculture is committed to water quality, citing the Farming for Water European Innovation Partnership (EIP), along with other measures, which are "bending the curve in the right direction".

However, today's decision on the derogation will come with new conditions that "must be met and managed in a practical, proportionate way", Mulvihill said.

From 2028, additional requirements will apply in specific catchments, including tighter buffer protections and reductions in chemical nitrogen allowances for derogation farms.

The EU has also required Ireland to complete "rigorous assessments" at catchment level for the Habitats Directive.

"We cannot relax now. The focus shifts immediately to further delivery," Mulvihill said.

"We will work in a whole-of-sector and whole-of-government manner in looking at the assessment process, ensuring schemes and planning works for farmers, and keeping momentum on the right measure in the right place," he added.

The DII director called on government and the EU to play their part by ensuring a fair and balanced regulation.

"The current process for the application of the Nitrates Directive for Ireland undermines certainty. Any application of EU directives should be proportionate and consistent across the EU and based on evidence. It is clear to all that a limit for a desert in Andalucia should not be the same as a farm in the Golden Vale," he said.

Mulvihill also called on the government to begin work now on a "durable framework beyond 2029", saying "stability is essential for decisions on breeding, infrastructure, and finance, and most importantly for generational renewal".

"As an industry, we’re ready to keep leading. Ireland has some of the best water quality metrics in the EU, and Irish dairy has one of the lowest environmental footprints globally for producing highly nutritious food," the DII director added.