Ireland is one of the best dairy production regions in Europe, with its dairy output accounting for 15% of global production. It serves as the source of raw materials for approximately half of the world's milk powder, and about one-quarter of infant formula is produced here. With the strong growth in China's demand for dairy products, the Irish dairy industry hopes to expand its market share in China.
Irish dairy products enjoy a reputation for being natural and healthy. The country produces 5.5 billion liters of fresh milk annually, which also proves the popularity of Irish dairy products in the global market. Today, the high output and diversity of Irish dairy products are driving the country's dairy industry to set its sights on a larger share of the Chinese market.
Farmer Padraig Walsh said: "It is clear that a country with a huge population like China is very important to Ireland. China's dairy consumption is growing every year, so we hope that in the next step, the Chinese people will buy more high-quality Irish dairy products. Therefore, it is necessary for us to expand dairy production."
Jim Bergin, CEO of Glanbia Ingredients Ireland, believes that China's dairy consumption is growing at a faster rate than its dairy production, making China an extremely important dairy importer on a global scale. He said: "Ireland exports 85% of its dairy products annually. At this stage, we have already established connections with a vast number of Chinese consumers, and we know that they highly recognize the high-quality and high-standard Irish dairy products. We look forward to doing more business with them in the future based on the contracts already signed."
Glanbia Ingredients is located in Ballyragget, County Kilkenny, in the south of the country, and is one of the largest integrated dairy production bases in Europe. Glanbia processes approximately 30 million liters of milk there every week, producing a range of dairy ingredients that are exported to about 50 countries worldwide.
Bergin said that Ireland is one of the best countries in the world for dairy, and its dairy products are known for their high standards and high quality. He said: "Ireland has a mild climate, so cows can graze in the fields for at least 8 months a year, which is the most natural way to produce dairy. The high safety and high quality of Irish dairy products have a long history, and 15% of the world's infant formula raw materials come from Ireland. I am sure that Chinese consumers highly recognize Irish dairy products."
Walsh also believes that Irish dairy is essentially a natural product, with its nutritional components mainly derived from grass. He said: "You can see the cows behind me; 85% to 90% of their annual diet consists of fresh grass, so I believe they can provide the market with better quality dairy products."
David Butler, an official from the food division of Enterprise Ireland, also believes that Ireland has the best pastures in Europe, which is mainly due to the local climate and soil that are conducive to grass growth.
Currently, the European Union implements milk production quotas for member states that produce dairy products. However, the milk production quota restrictions will be lifted in 2015, which will bring significant development opportunities to Ireland, a major dairy producer. The EU's implementation of the milk production quota system dates back to 1983, when Ireland's milk production was growing at about 20% annually, but that was the year the EU began implementing quota restrictions. Walsh believes that Ireland has a large, well-educated young workforce that is now willing to engage in the dairy farming industry. He expects that once milk prices look favorable, we will see a surge in milk production similar to the period before 1983.
Bergin said that with the approaching cancellation of the EU milk quota system, Ireland has launched ambitious dairy development goals, planning to increase milk production by 50% based on current levels. Butler believes that the future growth in milk production will bring huge opportunities for Ireland to innovate high-value-added dairy products and dairy ingredients.