The Irish Co-Operative Organisation Society (ICOS) has said that the Irish dairy industry is "entering a period of managed transition".

The comments came from the chair of the ICOS dairy committee Eamonn McEnteggart, following a meeting of the committee at which Minister for Agriculture, Food and Marine Martin Heydon spoke.

The purpose of the meeting was to address the current policy challenges facing the Irish dairy sector.

A range of topics arose at the meeting, including the nitrates derogation, with McEnteggart telling the minister that the extension of the derogation was "a massive relief for farm families and the entire dairy industry".

McEnteggart said the industry and sector "must seize the opportunity" and use the three years of the derogation extension to maintain and improve water quality standards by working with farmers and by ensuring "a practical and workable approach" to the Habitats Directive.

"The next three years must strengthen farmer engagement, improve environmental performance and ensure the Habitats Directive is implemented in a practical, workable way," he added.

"We must balance environmental ambition with sustaining Ireland’s pasture-based model, which underpins rural economies and export performance,” McEnteggart said.

Minister Heydon

Minister Heydon described the extension of the derogation as an opportunity for the sector to "double-down" on the positive initiatives in place to improve water quality.

The minister also highlighted the importance of the Common Agricultural Policy (CAP) for food security.

He indicated that there was "too much complacency" around food security, which he said needs to be addressed, and that this will be a priority for the Irish presidency of the Council of the EU, which will begin on July 1.

The minister told the meeting that "recent global disruptions" underlined the need for strong domestic production.

He said that Ireland will use its EU presidency to align sustainability with economic viability and long-term capacity.

Other topics that arose in the meeting included generational renewal; the Common Market Organisation (CMO) regulation; the Carbon Border Adjustment Mechanism (CBAM) fertiliser tax; income volatility; bovine TB; and bluetongue.

The minister acknowledged these concerns and, according to ICOS, "reaffirmed engagement" with the co-operative sector to support "resilience and competitiveness".

Irish dairy

On foot of the meeting, the ICOS dairy committee concluded that the Irish dairy industry is entering "a period of managed transition".

"While global dairy demand remains strong, particularly in growth markets outside Europe, future success will depend on efficiency, environmental credibility and strategic collaboration across the value chain," the organisation said.

McEnteggart commented: "In a European context where milk output may decline, Ireland's grass-based, export-focussed model remains well positioned, provided policy stability, innovation and investment continue."