This is a subscriber-only article
Total imports of milk into the Republic for processing in 2016 was “the highest on record and amounted to 813m litres”.
This is an increase of 219m litres, or 37%, on 2015, according the National Milk Agency’s (NMA) annual report for 2016.
All 813m litres imported into the Republic came from Northen Ireland and equates to 37% of all milk produced in NI last year.
The large increase is likely based on Lakeland’s acquisition of the Fane Valley business, which has seen milk produced in NI but processed in Lakeland’s Baileborough facility in Co Cavan.
However, imports of milk for liquid milk for consumption from NI to the Republic amounted to 143m litres. This is an 8% decline.
Record 813m litres of milk from NI went to ROI for processing in 2016. That is 37% of all NI milk. Very significant in context of brexit
— David Wright (@dwright_IFJ) July 5, 2017
The NMA’s report also showed that total milk supplies increased by 4% last year, to a record 6.65bn litres.
While consumption of fresh milk decreased by 2% to 590m litres, the national average retail price of fresh milk fell by 1%.
The number of registered liquid milk suppliers stands at 1,754, an increase of 29 contracts on the previous year. The number of registered contracts has reduced from 2,282 to 1,754, a reduction of 528 in the past decade.
Exposed to Brexit
Chairman of the NMA Denis Murphy said the volumes of milk imported into the Republic highlights just how exposed Ireland is as a result of Brexit.
“No member of the EU will be as exposed as Ireland to the consequences of the UK’s decision to exit the EU, the EU Single Market and the EU Customs Union.
“For dairy farmers, the focus must be on continuous improvement in quality, high performance, cost efficient and sustainable milk production.
“Export markets for dairy products are continuing to strengthen into 2017. After the adverse out turns of the previous two years, a virtuous circle is emerging in the Irish dairy sector due to rising milk prices, rising milk supplies and falling dairy input costs.
“Political actions and events are reshaping the world order and could have adverse consequences for global trade, for markets and particularly for small, open economies like Ireland. Uncertainty, volatility and change are the new normal,” Murphy said.
SHARING OPTIONS: