Irish milk supply to top 1bn litres a year

Dairygold expects its annual milk supply to exceed a billion litres in the coming years, and has plans to deliver added value at every point along its processing chain.

The north Cork-based co-op saw its milk supply rise 2% to 975m litres during 2014. While the volume is rising, so too is the quality of milk, and notably its solids content, for which the co-op praises the commitment of its suppliers.

“The post-quota era offers real opportunities and Dairygold is ready to take full advantage,” said James Lynch, Dairygold co-op’s new chairman.

A dairy farmer from Sixmilebridge, Co Clare, Mr Lynch was appointed in January, replacing long-standing Dairygold Co-op stalwart Bertie O’Leary.

He joined the board in 2008 and was its first vice-chair. His was the Dairygold Monitor Farm visited by China’s premier, Xi Jinping, in 2012.

Tom Feeney, from Ballyheaphy, Co Cork, took on the vice-chairman role.

Mr Lynch said: “We have a well invested and efficient processing business, delivering a consistently strong financial performance and paying leading milk and grain prices.”

Mr Lynch noted that the 9% fall in turnover to €227m at the co-op’s agri-business was actually a positive for farmers. While the good weather saw the co-op selling less animal feed, farmers welcomed spending less on ruminants. Dairygold purchased more than 128,000 tonnes of grain from its suppliers during 2014, up 11% on 2013. The business also launched an e-commerce retail website which it will further develop this year.

Mr Lynch highlighted farmers’ commitments to quality milk production, matched by Dairygold’s €1m investment in a joint three-year development programme in partnership with Teagasc.

Also in 2014, Dairygold became an active member in Bord Bia’s Origin Green sustainability programme, in which it has been shortlisted for awards in three separate categories.

At farm level, more than 70% of Dairygold milk suppliers have signed up to Bord Bia’s national Sustainable Dairy Assurance Scheme, for which the results of the of-farm audits have been excellent.

Mr Lynch is confident the strategy developed by Dairygold’s board and its suppliers will continue to deliver the quality product required by international buyers.

“Events beyond our control, such as market returns, will present challenges, but the long-term fundamentals for the industry are sound,” he said.