THE IRISH Dairy Board has predicted a positive outlook for the industry in 2010 as Kerrygold reported a 9 per cent increase in its global sales of branded products last year.
However, the board’s interim chief executive, Dr Seán Brady, said the recovery in prices paid for butter and powders from the middle of this year was “fragile”.
“International buyers are fully aware that almost 400,000 tonnes of butter and skim milk powder are being held in storage in the EU and US, and are, as a result, tempering their purchases in expectation of a limited release of product on to the market sometime in 2010.
“Given the current economic situation and demand, it is essential that the release of this stock is managed and export refunds are reinstated if necessary to ensure that surpluses do not re-emerge in 2010, leading to a decline in prices again and a renewed build-up of intervention stock.”
Saying he was optimistic for the future of the industry here, Dr Brady said the fundamentals were strong as the Republic had quality products from milk produced in the most natural environment – grass. This had to be the cornerstone of the industry in the future.
“The world’s population is growing, urbanising and westernising, and dairy products can deliver the nutrient elements to support this. Food security and supply is a major concern, and the Irish dairy industry is poised to respond to that.”
He said an improvement in the economies of the emerging markets in particular would stimulate a recovery in demand for dairy products. Limited availability of cheese from Australia and New Zealand would also create opportunities for Irish exports to the Middle East and north African markets in the short term.
“Global sales of Kerrygold branded products are up 9 per cent year-on-year. This is impressive given the economic situation and heavy competition in the marketplace, and was achieved by a robust marketing activity.”
Meanwhile, Ireland’s pigmeat trade, which was severely disrupted a year ago because of the dioxin crisis, returned to normality in the UK and continental markets in 2009. Because of the crisis, two major markets, Russia and China, are still not accepting Irish pork products.
Recovery was slow in the early part of this year as Ireland sought to recover markets and to work to re-establish the fact Irish pork products were safe.
This was greatly aided by the endorsement of the European Food Safety Authority.