Derogation Loss Could Devastate Irish Dairy Sector-Teagasc

A Teagasc economic assessment warns that losing the Nitrates derogation could trigger a 39% drop in family farm income, potentially forcing the closure of hundreds of dairy farms . Nationally, dairy cow numbers may fall by 15%, and milk output drop by up to 1.2 billion litres, slashing exports by about €1 billion annually and endangering jobs in processing and related rural industries .

Moreover, if affected farmers sought to maintain herd sizes by renting land, they’d need an additional 113,000 hectares — equivalent to the size of County Kildare — a move that could disrupt land markets and broader agricultural sectors . The IFA calls on government to urgently deliver a workable derogation extension to avert this looming economic crisis.

Industry Insight

The potential loss of the derogation underscores its critical role in sustaining Ireland’s pasture-based dairy model. The report highlights significant systemic risk—not just to individual farms but the entire rural ecosystem. Policy-makers must now weigh the environmental objectives alongside rural economic resilience. Securing a reasonable extension is essential to prevent widespread destabilization of Ireland’s dairy economy.

Source : Dairynews7x7 Sep 8th 2025 Teagasc