Dairy now accounts for 7.5% of the industry spend in the Irish economy, according to agri economist Ciaran Fitzgerald.

Speaking at the National Dairy Council’s Dare to Dairy event on Tuesday, he said the agri food industry supports one in eight jobs in the economy. But the importance of the agri food sector may be hidden by ‘‘Father Ted’’ economics.

“The Minister for Finance talks about GDP, but spends GNI,” Fitzgerald says. “There’s a serious amount of money we don’t get to spend ‘resting in the economy’.”

Last year, the Irish GDP was €290bn, but the CSO figure is €90bn less than that. Some €43bn is the footprint of Irish business in the economy and agri food accounts for €15bn of that, Fitzgerald says that is how the importance of dairy should be assessed.

“We know corporation tax will be defended, but dairy and agri food are equally important. We need an investment fund for dairy that has an impact.”

Retail pricing policy generates volatility, he said, adding that there should be a ban on below cost selling of dairy products.

“The-pre-Brexit view that we should expand because we are more competitive in dairy production has very much been called into question. We’ve already been hit by the devaluation of sterling.”

Image

Meanwhile, consumers are increasingly opting for dairy-free, says Rabobank researcher Peter Paul. Limiting or moderating milk or dairy in the diet is most common among females, the middle-class, 25- to 34-year-olds, those who are pre-family and those living in Dublin.

“It’s all about perception, health and sustainability. It doesn’t have to be true; if it’s what people believe it is what’s happening.

‘‘There are elements of the dairy industry we must watch closely,” Paul said.

Vegans

The number of vegans accounts for 3% of all adults in the country, according to research from the Marketing Institute of Ireland. In a survey of just over 1,400 people, one in four said they do not have enough information to trust dairy farmers. This drift in mistrust is primarily among milennials.

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