Dairygold reports modest gains despite harsh market conditions

IRELAND – Dairygold, one of Ireland’s leading dairy cooperatives, has reported modest financial gains for 2024 despite facing challenging market conditions, according to its recently released annual report. 

The Munster-based processor, headquartered in Mitchelstown, saw its turnover reach US$1.47 billion, a slight increase of US$11.1 million from the previous year. 

This growth comes even as milk production dropped, reflecting a volatile global dairy market and rising operational costs.

The cooperative’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at US$68.6 million, a positive outcome highlighted in a report by Dairygold. This figure underscores the company’s ability to navigate a difficult year marked by fluctuating milk prices and supply chain pressures. 

Dairygold also approved a US$14.7 million cost-saving program aimed at ensuring long-term sustainability, a move that reflects its proactive stance in addressing ongoing challenges.

Dairygold acknowledged that generational renewal remains a significant hurdle for the dairy sector. Fewer young farmers are entering the industry, posing a threat to future milk supply. 

“We’re working hard to support our farming communities, but the challenge of bringing in the next generation is real,” said a Dairygold spokesperson. 

The cooperative has invested in initiatives to encourage younger farmers, though progress has been slow.

Despite the dip in milk volumes, Dairygold maintained stability through strategic adjustments. The company, which processes milk from over 7,000 farms, leaned on its diverse product range, including cheese, butter, and milk powders, to offset losses. 

Dairygold’s export markets, particularly in Europe and Asia, played a key role in sustaining revenue. However, rising energy costs and inflation have squeezed margins, forcing the cooperative to tighten its operations.

The company’s leadership remains optimistic about the future. “Our focus is on resilience and supporting our members through these tough times,” said CEO Conor Galvin in a statement.

The cooperative also returned US$25.2 million to its farmer-members in bonuses and dividends, reinforcing its commitment to its base despite the economic headwinds.

Industry analysts point to broader trends affecting Dairygold’s performance. Global dairy prices have been unstable, with competition from New Zealand and the United States intensifying.

Meanwhile, extreme weather in Ireland has disrupted milk production, adding pressure on supply. Dairygold’s modest gains signal a cautious but steady approach, balancing investment with cost control.

As the cooperative looks ahead, its US$14.7 million efficiency plan will target operational improvements and sustainability goals. 

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