The loss of the nitrates derogation could see milk cheques cut by €555m a year, Dairy Industry Ireland (DII) has warned.

An economic impact assessment commissioned by DII found that €45bn could be lost from the economy over the next 10 years should the derogation not be renewed by the European Commission.

It also found that 29% of the country’s milk processing capacity would be unused during the peak months of the year due to the loss of milk supply. DII director Conor Mulvihill said the loss of the derogation would hollow out rural communities and push up food prices.

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