Farm gate milk prices are set to come under pressure over the coming months, but it is far from an ‘end-of-days’ scenario for Irish dairy farmers.

The milk sector has demonstrated on numerous occasions in the past just how resilient it can be.

And no doubt, this will continue to be the case into 2026 and beyond.

Fundamentally, dairy farmers want a degree of security for their businesses moving forward.

In reality, the monthly milk price is not the fundamental driver here: rather it is the prospect of what might happen over a three-year dairy production cycle that will be of fundamental interest to producers.

Recent years have been characterised by massive swings where the tenor of milk and commodity input markets are concerned.

Rural economy

Dairy farming remains at the very heart of Ireland’s rural economy.

If milk production is not profitable, herdowners stop spending money and the knock-on effects throughout every town and village across Ireland are palpable.

There’s no other sector of agriculture that can generate such a regular cash flow. 

What’s more, small increases in milk price can make that all-important difference between profitability and loss.

This is why it is so important for dairy farmers to continually strive for better milk quality.

All the evidence points to the fact that the targeted feeding of concentrates can significantly improve milk butterfat and protein throughout the grazing season.

Politicians should also be mindful of the fact that dairy farming is the powerhouse of agriculture throughout Ireland.

Apart from the jobs created on farm, the sector also underpins thousands more at the processing level.

World Dairy Summit

Most commentators firmly believe that food production has a bright future.

Global food output will have to double over the next 20years, if the world’s projected population is to be fed.

Significantly, demand for dairy products - particularly in developing countries - is set to rise at a proportionately higher level.

The recent World Dairy Summit, held in Chile, saw the president of the International Dairy Federation, Gilles Froment, indicating that global demand for dairy will outstrip milk production levels over the next decade.

So naval gazing over what might happen over the next few months is not the real issue that dairy stakeholders should be focussed on as they look towards 2026 and beyond.

The real challenge is that of gearing up for an expanded milk output scenario, which can be delivered in the most sustainable way possible.

Here in Ireland we have the land and a dairy farming sector with the potential to avail of this opportunity.

What is required is the creation of the right infrastructure to make it happen.