The supply of milk from Irish producers to the dairy processing sector is subject to the production constraints imposed by the milk quota regime. Given that a levy is payable on milk production over and above Ireland's milk quota allocation, milk production volumes in Ireland have remained relatively stable over the last ten years.
The table below shows the production of Ireland's main dairy products in the years 1994 and 2003. It is clear that an increased proportion of Ireland's milk pool is being utilised in the production of cheese and casein, with a consequent reduction in the manufacture of milk powders; the production of butter and butteroil remains relatively stable. These trends are broadly in line with those in other EU member states.
Production of dairy products
|
1994 (tonnes)
|
2003 (tonnes)
|
Percentage change
|
Butter and Butteroil
|
142,297
|
147,200
|
+3.4
|
Cheese
|
92,700
|
111,900
|
+20.7
|
Skimmed Milk Powder
|
129,500
|
78,500
|
-39.4
|
Whole Milk Powder
|
36,041
|
31,037
|
-13.9
|
Casein
|
36,509
|
50,514
|
+38.4
|
The Prospectus report entitled, Strategic Development Plan for the Irish Dairy Processing Sector, recommends a readjustment in the Irish dairy industry's product portfolio with reduced production of commodity type dairy products and a greater emphasis on the development of higher margin products. Ultimately, it is a matter for the industry to respond to market demands and the realities of the new CAP support framework in deciding the product portfolio which will maximise returns from the marketplace.