The absolute importance of the dairy sector to Ireland’s rural economy has been confirmed, courtesy of a recent economic survey.
The work was carried out by the Irish Creamery and Milk Suppliers’ Association (ICMSA).
The results of the analysis carried out also confirm that the revenues secured by milk producers can be multiplied by a factor of almost two, when these monies are pushed back out into the rural economy as a whole.
The full breakdown of the ICMSA survey was unveiled at the 2022 National Ploughing Championships today (Tuesday, September 20).
Co. Cork heads the list of dairy-focussed counties. The ICMSA analysis confirms revenues to milk producers in the county over the past 12 months amounted to €1 billion.
This puts the amount of money circulating around Cork’s overall economy at just short of €1 billion. The county is home to 300,000 milking cows, equivalent to the number of dairy animals in all of Ulster and Connacht.
“Revenue generated by milk producers is one thing,” an ICMSA spokesperson said.
“The problem is that dairy farmers are haemorrhaging money at the present time on the back of fast-rising feed, fertiliser and energy costs.”
“The dairy sector is at the heart of the farming industry across so many Irish counties.
“It is the future. And the government must take full account of this reality.
“The Budget is next week: The government must take account of the fact that the dairy industry is a fundamental economic platform for largest swathes of rural Ireland.”
According to ICMSA, the dairy sector is not in a position to meet the 25% reduction target in greenhouse emissions, which was recently accepted as government policy.
“The government must make a realistic support package available to the dairy sector, if these climate change targets are to be met,” the spokesperson continued.
“If we end up in a situation which sees milk output levels falling by even 10%, the impact on Ireland’s rural economy will be devastating.
“In Cork alone, we would be talking about a drop in milk revenues of €100 million. And the impact on the wider rural economy could be almost double this figure.
“The government must come up with support schemes that have real meaning for commercial dairy farmers.
“These must be delivered with immediate effect, which is why next week’s Budget is so important for farming families across Ireland.”