An Explorative study into growth strategies used for developing a large-scale niche dairy Industry in Ireland

Abstract: The Irish dairy industry has seen significant growth in recent times. It is also seen as one of key drivers in the Irish government’s plans to grow food and drink exports. However, there is an environmental cost to this. The niche dairy industry has been stagnant for years. This project looks at the potential for the niche dairy industry to grow and resulting in higher economic impact but lower environmental impact compared to the conventional dairy industry. Niche milk in Ireland refers to organic cow, sheep and goat milk. In order to grow the industry, an extensive document analysis was conducted to identify the growth strategies used by successful niche dairy companies around the world from countries such as the Netherlands, U.A.E. and New Zealand. Interviews were conducted with stakeholders in both the conventional and niche dairy industries in Ireland in order to understand their mind-sets on the potential growth of the niche dairy industry. Market research was conducted in order to assess the value of these products and if there is specific trends these products would align with and finally the core competencies of the niche dairy industry were assessed in order to assess if the industry would have a competitive advantage over competitors in the world markets. The key outcomes of the research were that market development and diversification were the most common internal growth strategies. External growth strategies have the potential to provide synergies to niche diary industry that allow them to compete with conventional dairy due to benefits such as economies of scale. The Irish niche dairy industry would enjoy a sustained competitive advantage and there exists the expertise in Ireland to capitalise on the opportunity. Future research needs to be completed on the environmental impact of these niche dairy operations have in an Irish setting. There should also be increased lobbying to the government to offer supports to new entrants into these sectors.