ICOS Dairy Committee Meeting on key developments in the Irish and Global dairy industry

L-to-R: TJ Flanagan, ICOS CEO, Minister Martin Heydon, TD and Edward Carr, ICOS President

The ICOS Dairy Committee and Co-op Chairs met recently to discuss key developments in the Irish and Global dairy industry.

Against the backdrop of considerable change across the EU dairy sector, Rabobank were invited to the meeting and delivered a comprehensive paper on the topic of industry consolidation. Despite the current high levels of milk supply in the EU and globally, Rabobank are predicting a decline in EU milk production in the medium to long term (-5% in the EU between 2025-30). This will increase the momentum towards consolidation. Rabobank pointed to the impact of environmental regulations and an ageing farmer base as key factors that will limit milk production into the future. Apart from the broader trends, key consolidation drivers include cost synergies, securing milk volume and managing risk and volatility. They estimated that consolidation can unlock value through synergies of between 4-5% in target sales.

Eamonn Farrell, ICOS Agri & Food Policy Executive; Eamonn McEnteggart, ICOS dairy committee chairman; Minister for Agriculture, Food, Fisheries and the Marine, Martin Heydon TD; Edward Carr, ICOS president and TJ Flanagan, ICOS CEO at the ICOS dairy committee meeting in the Killashee Hotel, Co. KIldare. Monday 19 January 2026. Photo: Alf Harvey, NO REPRODUCTION FEE

Addressing the current policy challenges facing the Irish dairy sector, the meeting involved a keynote address by Martin Heydon, the Minister for Agriculture, Food and the Marine.

Eamonn McEnteggart, ICOS dairy committee chairman speaking at the ICOS dairy committee meeting in the Killashee Hotel, Co. KIldare. Monday 19 January 2026. Photo: Alf Harvey, NO REPRODUCTION FEE

In welcoming the Minister, the chair of the ICOS Dairy Committee, Eamonn McEnteggart described the extension of Ireland’s nitrates derogation for 3 years as a massive relief for farm families and the entire dairy industry. He said that over the next 3 years, we must seize the opportunity to maintain and improve water quality standards by extending our work with farmers and by ensuring a practical and workable approach to the Habitats Directive.

The Minister expressed optimism for the future pointing to the recent launch of the Boyne Catchment Programme. He 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 CAP in the context of food security. He said there was too much complacency around food security which he said needs to be addressed and this will be a priority for the Irish Presidency of the EU.

On other key topics, the Minister said he recognised the concerns of ICOS on generational renewal, the CMO regulation, the CBAM Tax on fertilizer, income volatility and bovine TB and bluetongue.