In this fourth Babcock Institute country study, Ireland's dairy industry was selected because (a) it reveals advantages and challenges associated with a pasture-based production system that is unique in the EU, (b) the country's dairy industry provides an excellent case study of the effects of milk production quotas, (c) the country's dairy sector faces challenges because of its dependence on exports, and (d) Ireland's dairy processors have made innovative use of joint ventures and foreign direct investment. The study describes different facets of Ireland's dairy industry, discusses key elements of the competitive environment, and provides implications for the U.S. and world dairy industries.