The loss of the nitrates derogation could cost the Irish economy close to €300m, the head of animal and grassland research at Teagasc, Laurence Shalloo, has indicated.
The cost to a typical milk supplier works out at an average of €45,000 per farm for 50% of all dairy farms in the country.
The loss of the derogation could also see milk production drop by 15% to around 6.5bn litres assuming farmers make no changes to their current system.
When asked by the Irish Farmers Journal at Moorepark 2025 about the matter, Shalloo said that there is “massive money” involved if the derogation is lost later this year.
He said that a draft economic impact assessment report has been shared with the Department of Agriculture, however “there was more analysis needed”. A final report will be published very soon, he stated.
The current derogation, which expires on 31 December 2025, is up for renewal.
Shalloo said that he had a positive outlook around the derogation’s renewal.
The Department of Agriculture requested Teagasc to provide environmental and economic modelling to ensure that the impact of any adjustment in the nitrates derogation is well understood, a Department spokesperson told the Irish Farmers Journal.
“The Department understands this report is still a work in progress and awaits receipt of the final report arising from Teagasc’s work.”
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