About a third of Northern Ireland’s milk output — around 800 million litres — is now exported to the Republic of Ireland, according to a report published by business group Ibec earlier this year.

William Chestnutt, a fourth-generation dairy farmer, said: “The dairy industry in Northern Ireland and the south of Ireland really took off over the last 20 years and the ability to supply outside of Northern Ireland has been crucial.

“Of the milk produced here, 95pc is exported out of Northern Ireland because we produce such a large volume of milk but have such a small population.”

The Dairy Council for Northern Ireland highlighted the impact of the Agreement in opening up an all-island dairy value chain delivering economic benefits to the industry in Northern Ireland, benefiting dairy farmers, processors and wider rural communities.

Dr Mike Johnston, chief executive of the Dairy Council, said: “The implementation of the Agreement made possible the free movement of milk with around one third of the milk produced in Northern Ireland now going south of the border annually to be processed, bringing economies of scale that contribute to an industry with an annual value approaching £1.5bn in Northern Ireland.

“The growth of the industry to become an economic driver for Northern Ireland is unparalleled; with economic efficiencies come the setting of high standards and environmentally efficient processes which have led to a global demand for our products.

“The combination of the GFA and the common EU standards that apply throughout the island have allowed investment to take place that has improved efficiency and maximised return on investment, all of which has benefited dairy farmers, their families and local communities in both Northern Ireland and the Republic of Ireland.

“As anyone who worked in the industry before and after the implementation of the Agreement will attest, dairy is an outstanding example of the positive outworking of the GFA.”

William has worked on his family farm since he was a child, but joined the business full time in 2010 and completing his agriculture degree at Newcastle University and spending 10 months working and travelling in Australia and New Zealand.

Chestnutt’s Farm is dairy-focused with a few head of beef cattle and some crops grown for the family’s own use.

“We milk 250 cows on 350 acres, some our own and some rented,” he said. “There would be maybe 500 head of livestock altogether including dairy replacements and calves.”

 

William farms alongside his parents, one full-time member of staff and two part-time relief milkers.

A dairy farm will typically supply one processor, which sends out its own tankers to collect supply.

Chestnutt’s Farm supplied its produce through the Milk Marketing Board up until it was disbanded around 1995, and then partnered with LacPatrick Dairies in Artigarvan, Co Tyrone.

A series of mergers and acquisitions followed with LacPatrick eventually joining the Lakeland Dairies co-op in the Republic of Ireland.

“Then, four years ago, we started supplying a family-owned creamery in Donegal called Green Pastures,” said William. “I didn’t like the way the co-op structure was set up and didn’t feel the farmers in Northern Ireland had much say in it.

“The way the Green Pastures payment system works, it incentivises autumn and winter production as in Donegal they would have quite a few spring calving herds.

“The bonus payments suited our system, as we were going down the autumn calving route and having the majority of our cows in September and October.”

Green Pastures collects milk from the farm, which produces an annual 2.2 million — 2.3 million litres, every other day.

“At peak production, we could be up as high as 16,000 litres every two days and then whenever we’re at our lowest point of production, which would be in August and September, we would be down as low as 6,000 litres,” he said.

Green Pastures’ main markets, meanwhile, are liquid milk for Dunnes Stores supermarkets in the Republic of Ireland and cream cheese and crème fraiche for the foodservice industry.

Not all milk produced on Chestnutt’s Farm is destined for Donegal, with the family introducing the first on-farm vending machine on the island of Ireland, The Milk Hut, back in 2020.

“We initially looked at that partly because of our location,” said William. “In Portrush there’s a large community of caravans and tourism on the North Coast and not just in the summertime, as we have the Giant’s Causeway and Bushmills Distillery which are year-round attractions.

“Also, I’m really not a fan of the milk in supermarkets and think the way it’s processed changes its flavour. The vending machine opened up the opportunity to diversify and let other people find out what milk tastes like whenever it’s not as processed.”

Three main elements differentiate his milk from standard supermarket produce.

“We sell only whole milk in the vending machine,” he said. “The type of pasteurisation we use is called batch pasteurisation, which is not what most big creameries use because they just couldn’t get the volume. It suits us because we’re only selling small volumes. The batch pasteurisation is done at a lower temperature for a longer time, 63 degrees for half an hour, in a stainless-steel pasteuriser.

“The other difference is milk in a supermarket is homogenised, so they push the cream through at very high pressure to break down the fat globules. Our milk is not homogenised so if you keep it in the fridge, a layer of cream will form at the top.

“And then the third difference is the standardisation, so whole milk in the supermarket would be 3.6-3.7% fat where our milk tends to not be any less than 4% and just that wee bit creamier.”

Vending machine sales will range from 30-40 litres on quiet days to upwards of 150-200 litres on high-volume days in the summertime.

While a busy working farm, Chestnutt’s does host prearranged groups through Causeway Coast Foodie Tours and participated in last year’s Open Farm Weekend.

William’s wife Alison also operates a small farm shop stocking its own milk and Greek yoghurt alongside around 35 local brands from Ballylisk cheese to preserves from Dundarave Estate in Bushmills.

After 18 months of strong pricing, William said the trend is now going the other way.

“Because we have such a big reliance on exports, we’re very susceptible to changes in price in the world market,” he said. “Recently the market for the main export products that come out of Northern Ireland, the likes of whole milk powder, skimmed milk powder and cream and butter, has crashed and farmgate prices have crashed so we’re staring down the barrel of a period of very low milk prices.

“As much as the price of fertiliser has come back, our feed bill hasn’t. The next six to nine months are going to be quite difficult and hard to predict.

“But you have to take the rough with the smooth. We’ve had a period of high milk prices and I just hope they return sooner rather than later.”