Expanding Irish Dairy Output by 50% Would Cost €850m
The cost of proposals to increase production of Ireland’s dairy industry by 50% over the next decade, to coincide with the ending of EU milk quotas, would cost about Eur850m, according to Kevin Lane, chief executive of the Irish Dairy Board.
The hike in Irish dairy output, as envisaged under the Government’s recently published Food Harvest 2020 policy document, would require investment of Eur400m in extra processing capacity to handle the additional 2.7b litres of milk, along with almost Eur250m in working capital, finance and the provision of associated facilities such as storage.
Food Harvest 2020 envisages doubling Irish annual cheese production to more than 300,000t and increasing whole milk powder production four-fold to 100,000t. However, to successfully market this substantial increase in production in overseas markets through brand support and the funding of acquisitions, would require further investment of at least Eur200m, points out Kevin Lane.
