Wedoany.com Report-Oct. 25, Northern Ireland’s dairy sector has recorded a significant increase in milk production during the first half of 2025, despite emerging market challenges. Annabel Twinberrow, an analyst at the Agriculture and Horticulture Development Board (AHDB), reported that milk deliveries from April to July rose by 9.2% compared to the previous year, adding 86.8 million liters. This growth surpasses Great Britain’s 5.3% increase, which amounted to 225.6 million liters over the same period. The Ulster Farmers’ Union noted that Northern Ireland accounted for approximately 18% of total UK milk deliveries in April, highlighting its critical role in the national supply chain.

Milk output in Northern Ireland has surged 9% year-on-year as strong EU demand fuels production growth

The production surge is largely driven by favorable economic conditions, with Twinberrow attributing it to an “attractive milk-to-feed price ratio” that has encouraged higher output across the UK. Northern Ireland’s dairy industry, which exports about 80% of its production, benefits from robust demand in European markets, sustaining returns through the summer. However, the sharp rise in output has strained processing facilities, as Twinberrow observed: “The sharp rise in milk output has placed pressure on processing capacity.”

While Northern Ireland farmers have reported adequate forage levels, unlike many in Great Britain who tapped into winter reserves due to poor growing conditions, market pressures are evident. Farmgate milk prices in Northern Ireland, which generally align with Great Britain’s, experience sharper fluctuations due to the region’s reliance on export markets. AHDB data indicates a more pronounced price decline in Northern Ireland from February to July 2025 compared to Great Britain, with recent trends suggesting further decreases. Wholesale data, particularly for butter, points to additional price adjustments ahead. “Prices could fall more rapidly than in GB,” Twinberrow noted, citing Northern Ireland’s sensitivity to global market dynamics.

As profitability faces challenges, herd management decisions are under scrutiny. Strong beef prices may lead to increased culling, while potential regulatory changes in the Republic of Ireland, such as stricter nitrogen limits, could affect stocking rates and influence production strategies in Northern Ireland. Farmers are closely monitoring global dairy markets as winter nears, balancing output with economic viability.

The region’s dairy sector remains a vital contributor to both local and international markets, leveraging favorable conditions to boost production. However, the interplay of rising output, processing constraints, and price volatility underscores the need for adaptive strategies. By maintaining efficient herd management and aligning with market demands, Northern Ireland’s dairy industry aims to navigate these challenges while continuing to support the UK’s food supply and export markets. Ongoing collaboration between farmers, analysts, and industry bodies will be key to sustaining growth and stability in this dynamic sector.

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