Spread thin: Volatility in milk prices has affected margins, despite strong recent revenue growth

The Dairy Product Production industry is a key component of the Irish economy. According to data from the Central Statistics Office, the industry processes almost 8 billion litres of milk per year, 8% of which is imported. The industry's products are varied and include butter, cheese, milk, yoghurt and ice cream, with butter being the largest segment in terms of revenue, estimated to generate 27.5% of industry revenue in the current year. Rising health consciousness among consumers has led to traditional dairy products falling out of favour, with many consumers changing their dairy consumption habits. However, more recent research has suggested that butter can contribute to a healthy diet, encouraging a rise in butter consumption...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has grown strongly, if irregularly, and is an important component of the Irish economy
  • Butter exports have risen rapidly in recent years, supporting the industry's expansion
  • Operators that focus on free range and organic dairy products are expected to fare well over the coming years
  • Industry Report - Industry Locations Chapter

    The South West and South EastIndustry establishments tend to follow the distribution of dairy farms, in order to cut transportation costs. The South West and South East regions are popular for dairy cattle farming with over 80% of the Irish herd located in the South East region. The South West is expected to hold 37.5% of establishments in the current year. County Cork, which is located in the region, holds the highest number of dairy cattle farms. Ornua Group, Kerry Group and Dairy Gold have operations in these two regions.BorderThe third most concentrated region for the Dairy Product Production industry is the Broder region, estimated to account for 16.7% of industry establishments. Lakeland Group has operations in this region...purchase to read more.

    Additional Insights for the Dairy Product Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dairy Product Production Industry are

  • Guaranteed supply of key inputs
  • Ability to pass on cost increases
  • Undertaking technical research and development
  • IBISWorld analysts also discuss how external factors such as Domestic price of milk and Liquid milk consumption in the Dairy Product Production industry impact industry performance..

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    What's in this report

    What is the Dairy Product Production in Ireland Industry?

    Operators in this industry manufacture dairy products such as liquid milk, cream, butter, yogurt, cheese and dry, condensed and evaporated milk. Operators supply these goods to a variety of market segments such as retailers, wholesale and food services. Producers of dairy products such as ice cream and frozen yogurt are also included in the industry.

    Industry Products
  • Liquid milk
  • Cheese
  • Butter
  • Ice cream
  • Yoghurt
  • Milk powder
  • Casein
  • Industry Activities
  • Liquid milk production
  • Pasteurised, sterilised, homogenised, ultra-heat-treated milk production
  • Cheese and curd production
  • Butter production
  • Milk-based soft drinks production
  • Cream production
  • Yoghurt production
  • Ice cream production
  • Casein production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of milk
  • Liquid milk consumption
  • Modified real disposable income per capita
  • Perceived health
  • Real effective exchange rate

  • Current Performance
    Milk pricesButtered upConsumer trends
  • Chart: Revenue Growth

  • Industry Outlook
    Consumer trendsTrading problems
  • Table: Dairy Product Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Product Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets in Ireland
  • Consumers in Ireland
  • Food, Beverage & Tobacco Wholesaling in Ireland

  • Key Selling Industries
  • Plastic Packing Goods Manufacturing in Ireland
  • Raising of Animals in Ireland

  • Products & Services
  • Butter
  • Cheese
  • Milk powder
  • Liquid milk
  • Other
  • Casein
  • Yoghurt
  • Ice cream
  • Chart: Dairy Product Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Food processors
  • Food-service operators
  • Households
  • Chart: Major Market Segmentation for the Dairy Product Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Product Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Product Production Industry

  • Industry Globalization
    Dairygold Co-Operative Society Ltd, Ornua Group, Lakeland Dairies,
  • Table: Dairygold Co-Operative Society Ltd - financial performance
  • Table: Ornua Group - financial performance
  • Table: Lakeland Dairies - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Product Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Dairy Product Production Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Farm-Gate Price
  • The price received by farmers at the point of production, i.e. the value of the product when it leaves the farm.
  • Homogenisation
  • Any of several processes used to make a chemical mixture the same throughout.
  • Pasteurisation
  • A process that slows microbial growth in food.
  • Saturated Fat
  • A fatty acid found in butter and cheese. It has been associated with heart disease and cardiovascular problems when consumed in excess.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Dairy Product Production in Ireland market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Dairy Product Production in Ireland:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Dairy Product Production in Ireland market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Dairy Product Production in Ireland, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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