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Irish growth surprises Burra Foods’ farmers

Burra Foods suppliers learnt about the Irish dairy industry during a recent study tour.

SOUTH Gippsland dairy farmers learnt the Irish dairy industry could surpass Australian production within years.

That fact surprised 24 Burra Foods suppliers who took part in the 2019 Burra Foods Ireland Study Tour.

“The biggest thing was the positivity of their dairy industry. Their industry has gone from strength to strength,” Burra Foods milk supply manager Peter Fort said.

“They are looking at surpassing 10 billion litres of milk a year in the next two to three years. They will overtake Australia.”

Irish dairy farmers ramped-up production off the back of the removal of European Union milk quotas four years ago.

These restrictions limited the production of milk in a bid to manage the market.

Milk production has boomed in the past 10 years, lifting 47 percent and Ireland is set to become a powerhouse of milk production in the coming years.

Mr Fort said the Irish industry’s optimism was reflected in the amount of scale of investment within the dairy industry.

“In the last 10 years capital expenditure in dairy processing facilities alone has exceeded €1.5 billion ($A2.4 billion),” he said. Among some of the new investments have been “sophisticated” nutritional powder plants and a €70 million mozzarella plant ($A 112 million).

Mr Fort said there was no doubt that dairy was driving the nation’s economy.

He said there were attractive subsidies for on-farm capital improvement and tax incentives from the government to drive dairy farming.

One included promoting the lease of farmland for dairy.

The income generated by leasing farmland to a dairy farmer would be tax free for seven years, Mr Fort explained.

 

Short URL: http://thestar.com.au/?p=29096

Posted by on Jun 17 2019. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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