Dairygold posted record turnover of €992.9m last year
The Munster-based co-op said its financial performance was “satisfactory”, and that it had paid €15m to suppliers in milk price premiums in order to help them cope with the effects of the extreme weather.
The company is looking to diversify its offering and committed €130m last year to help fund whey powder and non-cheddar cheese programmes.
It said the outlook for next year’s milk price will likely depend on global demand – which may prove sluggish amid an emerging global slowdown.
It also said Brexit uncertainty was overshadowing the market.
“No level of planning could insulate any EU organisation, trading with or through the UK, against the implications and consequences of a hard or no deal Brexit.
"That is why it is critical, no matter what the final outcome of the negotiations, that there is a sufficient transition period, to fully prepare for the future trading relationship between the EU and UK. Even then, the Dairy Industry will suffer serious consequences in the event significant tariffs applying,” Dairygold said.
Since 2009 and primarily as a result of the deregulation of the milk quota regime, Dairygold has seen its milk volumes grow by circa 500 million litres, a 60pc increase, with milk solids (protein and butter fat content) increasing by 70pc over the same period.
Dairygold Milk Suppliers are projected to increase their annual milk production volume to circa 1.65 billion litres by 2023. In 2018, the Society committed a further investment of €130 million to ensure it continues to process all its Members’ milk.