A strategic review of the dairy processing sector was commissioned and jointly funded by my Department, Enterprise Ireland and the dairy industry itself. This major consultancy study was undertaken by Prospectus and Promar International. The report was published on 19 March and has been broadly welcomed by the industry.
A key recommendation of the report is the urgent need for major consolidation and rationalisation at producer and processor level to achieve the scale and cost competitiveness necessary to continue to successfully compete for international business. The need to increase scale and efficiency is not a new issue within the dairy industry and a number of reports previously published have indicated the need for consolidation. There has been considerable movement in this direction in competitor countries in recent years and the Irish dairy industry must respond to ensure that it remains competitive on international markets. I am currently discussing the recommendations of the report with the processing industry.
While the report did not focus on production at farm level, it is the case that there will be an increasing need for upsizing at this level also, as has been happening throughout the country including the west, where the policy of ring fencing has applied. I will continue to assist committed active producers to expand and develop their enterprises to an optimal level.