There are two major changes taking place within the dairy sector. Globally, the rollout of tighter environmental restrictions plus higher demands for animal welfare is limiting the capacity of the world’s leading dairy producers to ramp up production. The impact on the global supply and demand balance is already evident with demand forecast to outstrip growth by 0.3% in 2021.
Closer to home, the environmental agenda is now affecting the future development of the dairy sector by impeding the development of further processing capacity in Ireland. While the objection by An Taisce to the proposed new cheese plant by Glanbia was subsequently rejected, the situation signals increased scrutiny and regulations pertaining to further planning applications.