Ireland’s largest dairy ingredients company has described the abolition of European milk quotas, which takes effect today, as “a generational opportunity” for the country’s dairy sector.
Glanbia Ingredients has inaugurated new facilities in counties Kilkenny and Cavan following a €235m investment, as it prepares for a surge in demand and an era of unregulated milk production. It has predicted that Ireland could produce up to 9t dm/ha annually, and said that it expects production among its 4,800 existing milk suppliers to increase by more than 60% by 2020.
In February, we reported that Glanbia Ingredients had lent its support to the removal of the quotas, describing the decision as “a momentous juncture” and “a unique opportunity to… bring an additional €1bn into the Irish economy”.
Speaking at the opening of Glanbia Ingredients’ Kilkenny facility, Irish prime minister Enda Kenny said: “2015 will be the year of rural recovery because of developments like the one being announced today. This Glanbia facility will allow Ireland to maximise the job potential from increased production following the end of EU milk quotas. As such it is an important strategic development in the government’s work to secure the recovery.”
Glanbia Ingredients Ireland commercial director Nick Whelan added: “Our new nutritional ingredients plant at Belview has been developed exclusively for the export market. We already export a wide range of dairy ingredients to more than 50 countries but we have ambitions for further growth, particularly to meet growing demands in Asia, the Middle East, Africa and Central America.
“Food is Ireland’s number one export sector and is seen by all government agencies as being critically important to the economic recovery, particularly in rural Ireland. Our suppliers are confident about the prospects in the sector now that restrictions have been removed, and about the economic multipliers that will be felt throughout their communities.”
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