Dairygold reports record €1.65bn turnover after ‘extraordinary year’ for dairy prices

Operating profit of €40.2m was delivered by Cork's Dairygold on the back of 'unprecedented' market returns 

Pictured at the announcement of the Dairygold 2022 annual results are Seán O’Brien, Chairman, Dairygold, Ann Fogarty, Group Company Secretary, Michael Harte, Chief Financial Officer and Conor Galvin, Chief Executive.

Cork's Dairygold Co-operative saw turnover reach a record high of €1.65bn last year, up over 40% since 2021 after the society maximised unprecedented market returns.

Operating profit rose by more than a third to €40.2m, up by just under €10m from the previous year, which the company said was achieved against a backdrop of "considerable volatility and inflationary pressures."

The dairy business increased turnover by €477.8m last year, with the company noting weaker output, post-pandemic supply bottlenecks, stable demand and the war in Ukraine as "significantly strengthening" dairy market returns.

Speaking on its performance, Dairygold's Conor Galvin, who took over as chief executive in 2021 from Jim Woulfe, said profits were driven by "maximising the unprecedented high market returns, achieving enhanced operational efficiencies, while managing volatility and significant inflationary pressures. 

"This enabled the Society to pay very strong and extremely competitive prices to Members for their produce," Mr Galvin continued.

The company paid a historically high milk price of 62.4c for a litre of milk last year, up from 36c in 2021. While prices have weakened since the beginning of 2023 following reduced demand and slower growth, Dairygold said that its main priority is to "continue to maximise returns for its members" in 2023.

Profit before tax at Dairygold rose by just under 19% to €68.95m in 2022, up by more than €10m year-on-year. Despite more than a decade of significant capital investment, the dairy business reported a 22% increase in its debt, rising by over €24m to €132.3m in 2022. The company's asset value rose by just under 9% to €457.8m in the same period.

"The dairy industry and the volatile conditions within which it operates continues to go through a period of significant uncertainty, with huge challenges to be faced, including sustainability, geopolitical tensions and ongoing market volatility," Mr Galvin continued.

"We need to be cognisant of how these challenges will influence the future, to continue that success over the coming years."

Dairy Ireland’s turnover in 2022 was €1.03bn, an increase of €301.6m in 2021, reflecting record increases in dairy market prices last year. 

Dairygold’s Agri Business also delivered a very strong performance across all activities in 2022, however, it noted the impact of increasing costs and supply issues as challenges to the business.

"2022 has been a very good year for the Society," said Dairygold chairman, Seán O'Brien, who took over the position this year from John O’Gorman.

"As we move further into a new year, high input costs, market volatility and the current geopolitical landscape continue to be a concern. We will continue to work in the best interest of our Members, while also continuing to deliver on our Members’ ambitions."