The Republic of Ireland’s milk production tipped into year-on-year decline from April but remains above 2024, according to the UK’s Agricultural and Horticultural Development Board (AHDB) report, while lower milk prices and high input costs are putting pressure on margins. However, exports remained buoyant in the first quarter of 2026.

Similarly to GB, Irish milk volumes tipped into year-on-year decline in April 2026 (-3.4%), in comparison to a large 2025 base, according to figures published by CLAL. A drop in farmgate milk prices has weighed on producer margins.

Irish milk volumes since fell by 1.5% in May. The cumulative calendar year so far (Jan-May) now runs 0.6% behind last year, but 6.9% above 2024.

Alongside the significant cut to average milk prices towards the end of 2025, input pressures have heightened. In particular, fuel costs, with shortages driven by geopolitical tensions in the Middle East. Fuel protests across Ireland in April led to further disruption, reportedly affecting feed supplies and milk collections. A fuel subsidy has since been arranged for farmers, covering the months of March to July to reduce some of the impact.

Teagasc expect the average milk prices for 2026 to be 20% below 2025 averages, having a large hit on dairy farm incomes. The outlook for 2026 (published in December 2025) forecast Irish milk production to remain broadly unchanged from 2025 volumes.

Latest announced milk prices in Ireland look to show tentative signs of improving, but remain at challenging levels.

Temperatures have been above summer norms, but heat stress has been less severe than in the UK. However, with rainfall also having been low and Ireland dairy particularly reliant on grass-based systems, this is likely to be affecting supplies, and therefore milk production.

Ireland is a significant player in the European dairy market, accounting for 6.3% of EU dairy export volume in 2025 and is a significant exporters to the UK market. Therefore, changes in production have knock on effects to broader market dynamics. In the first quarter of 2026, dairy export volume from Ireland rose by 36% year-on-year, primarily from increases to Vietnam, the US and Egypt, AHDB notes.