Irish dairy exports hit record levels in 2025, but further commodity price gains look unlikely. As DairyReporter reports, Irish dairy is increasingly leaning on premium and protein-rich products to protect margins and sustain export growth.

Riding on elevated dairy prices and a strong grass season, Ireland’s dairy exports rallied to record-setting levels in 2025: €7.3bn (+14% YoY), with butter (€2bn, +24%), whey (€360m, +20%) and cheese (€1.7bn, +19%) all benefiting from favourable demand. With high milk supply volumes set to pressure commodity prices in 2026, Irish players are doubling down on premium dairy to protect margins.

“What suppliers are looking at is where they can add value, and having that diversification away from the commodity is really important for all Irish dairy, especially in the UK market,” said Bord Bia’s Estelle Alley. 

Snacking, gut health and healthy indulgence are major trends supporting cheese, butter and yogurt.

2025 export snapshot: 

  • Total dairy export value €7.3bn (+14% YoY) across ~140 markets, with over 1.6m tonnes shipped. 
  • Butter led at €2bn (+24%), followed by cheese at €1.7bn (+19%) and whey at €360m (+20%). 
  • The EU, UK and North America accounted for 72% of export value.
  • Milk collections hit a record ~8.8bn litres.

Snacking, yogurt and food-to-go formats

“We’re snacking so much more than we ever have been on the go, and dairy falls naturally into that as a healthier snack,” Alley said.

Citing cheese snacking and cream cheese as growth avenues, alongside on-the-go yogurt pouches targeting consumers from childhood to adulthood. The UK yogurt market — particularly the protein space — also offers expansion opportunities for Irish brands.

Ingredients and whey move into focus

Irish suppliers are also strengthening their ingredient portfolios, particularly whey protein processing capacity. WPC80 and WPI continue to trade at attractive premiums as supply-demand dynamics maintain stable pricing for processors, making whey processing a reliable, high-margin income stream — in line with how protein demand is increasingly shaping nutrition platforms across the industry.

Margin pressure looms

“The mood is optimistic, but we know it’s still a fragile and volatile environment,” Alley said. “Innovation is a real opportunity driver, and dairy is well placed to capitalise on that, particularly through naturalness and premiumisation.”

Source: DairyReporter