Dairygold profits down as milk prices fall

The Dairygold Group’s pre-tax profits fell drastically last year.

According to figures from the Mitchelstown company, profits were just €1.3m in 2008 — compared to €15.9m the previous year.

The operating profits plunged to just €2.3m last year, compared to €21.4m in 2007.

The economic slump has resulted in a knock on effect on the dairy industry, with rising costs including energy, fertiliser and feed playing a major role.

Some €20m was paid out to farmers during last year to compensate them for the fall in milk prices after the fall in the international dairy markets.

Despite the dramatic fall in fortunes, Dairygold’s acting chief executive Michael Harte said the company’s performance was satisfactory under the current circumstances.

However, the group’s chairman Vincent Buckley said the group will not be able to sustain milk prices at the levels paid to farmers last year.

He said the continuing fall in dairy markets in the global economic slump means it would not be possible to keep milk prices at the 2008 levels.

He called for Government and EU action on addressing the difficulties facing the dairy industry.

He said it was not just or realistic to expect dairy farmers to face prices less than those paid 20 years ago.

Article courtesy of the Evening Echo newspaper.