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Ireland's dairy industry is undergoing a major transformation as record milk production is increasingly being directed towards high-value medical nutrition and protein products, responding to changing global demographics and rising demand for specialised nutrition. According to the Irish Examiner, Ireland produced a record 8.8 billion litres of milk in 2025, yet only around one in every 18 litres is sold as fresh drinking milk.
The remainder is processed into products such as butter, cheese, casein, skim milk powder and specialised dairy ingredients, with the industry now pivoting beyond infant formula towards premium healthcare and protein nutrition.
The shift is being driven by significant investments across the sector. Danone plans to expand its Macroom, County Cork facility by adding 230 jobs through the construction of Ireland's first Advanced Medical Nutrition (AMN) liquid nutrition plant, scheduled to open in late 2028, producing specialised nutritional drinks for cancer patients, stroke recovery and elderly nutrition.
Meanwhile, Tirlán has announced a €126 million investment in a new whey processing facility at Ballyragget, expected to be operational by mid-2027, strengthening its position in high-value whey protein production. Whey protein isolate prices have increased to as much as €28,000 per tonne, reflecting strong global demand for protein-rich nutrition products.
The industry's export profile is also evolving. Irish dairy exports reached a record €7.3 billion in 2025, up 14% year-on-year, with shipments exceeding 1.6 million tonnes to around 140 international markets. Butter exports rose 24% to €2 billion, while cheese exports increased 19% to €1.7 billion, together accounting for around half of Ireland's dairy export value, compared with 41% two years earlier.
In contrast, exports of specialised nutritional powders, including infant formula base, declined by around 25% to €630 million, largely due to weaker demand in Asia. The report highlights that Ireland's dairy sector is increasingly creating value by focusing on premium healthcare nutrition, cheese and protein ingredients rather than commodity dairy products. (Irish Examiner)
Source: Dairynews7x7 13 July, 2026 Read full story here
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