Tirlán generates €5.5bn in 2022 on back of bumper milk prices
Economic activity of €5.5bn, which supported over 19,200 jobs, was generated by dairy co-op Tirlán during 2022, a new economic impact study, by Ernst & Young (EY), has shown.
The €5.5bn was generated through revenue, expenditure across production, employment activities and the record milk and grain prices which saw over €2bn paid to more than 5,000 farms.
Record farmgate prices saw an average of 63c/l (including VAT) paid for milk, with green feed barley reaching €310 tonne.
However prices were mirrored by a sharp rise in farm input costs, with significant increases in energy, fertiliser and feed.
The results of the assessment were announced at the processors first AGM in Kilkenny today, and follows the formal creation of Tirlán last year, arising from the acquisition of the remaining 40pc of Glanbia Ireland from Glanbia plc, to create a fully farmer owned co-operative.
The study sets out the economic footprint of Tirlán’s agribusiness, consumer, and ingredients operations at local and national levels.
Tirlán now exports to over 100 countries, with its portfolio including many of Ireland’s best known brands, such as Avonmore and Kilmeaden.
Tirlán CEO, Jim Bergin said there is a great responsibility on policy makers, co-op leaders and farmers “to work positively together and we are determined to identify the opportunities to protect this great industry and to ensure the sustainability of our farm families into the future.”
The company has operations in 17 counties with a total of 11 processing facilities and 52 agri-branches.
The report also highlights the scale of Tirlán’s capital investments, with €90m spent in 2022 to upgrade facilities across the business.
The €90m capital expenditure figure also includes a contribution towards the investment in the €200m continental cheese facility, Ireland’s largest ever dairy investment, that is under construction in South Kilkenny with partners Royal A-Ware and due to be commissioned early next year.
Tirlán claims that for every €1 the co-op earns in revenue, €1.80 is generated in the wider economy.
Annual report and accounts for 2022 show that Tirlán delivered operating profits of €71.9m and profit after tax of €44.6m.
The company sold over 423,000t of dairy products and ingredient solutions into 100 markets during 2022.
The co-op has a balance sheet value of €1.2 billion at year-end, with a significant portfolio of investments including the largest single shareholding in Glanbia plc at 28%.