Over the past year, significant price rises have occurred primarily in the energy sector with natural gas and oil prices reaching record highs. These price rises have been amplified by the impacts of Russia’s illegal war in Ukraine and have significant implications across all sectors, including the agri-food sector.
Dairy processing is a critical industry both for consumers in Ireland, our rural communities and our exports. As an industry with a high thermal load demand many dairy processing sites are currently gas dependent. The dairy industry in Ireland continues to work on its energy intensity reduction to cut emissions in line with the Climate Action target reductions and indeed for business costs reasons. In line with the seasonal nature of milk supply, energy demand in the industry will be lower during the winter period.
The Government is monitoring the gas supply and needs of industry as part of a wider review of national gas security needs in an effort to mitigate against supply concerns and the burden of increasing energy costs. Budget 2023 includes a number of measures aimed at mitigating these cost increases.