'Significant deterioration' in dairy market impacts Dairygold's profits

Chief executive of Dairygold, Michael Harte, said 'significant deterioration in global dairy market returns' from August onwards was the 'defining factor of the year'.

Higher costs and a “significant deterioration” in the global dairy market during 2025 has seen operating profit at Dairygold Co-Operative Society Ltd drop nearly 43% last year, the company's latest annual report shows.

The butter and ingredients producer did report an increase in turnover during the year of nearly 10% to €1.54bn — compared to 2024 — but its costs of sales also increased by 13% to €1.27bn. In addition, its operating costs increased from €219.1m in 2024 to €228.2m last year.

The average milk price paid by the company was 53.8c per litre, including constituents, sustainability and quality payments, and Vat. Additional depreciation costs in 2025 led to the company reporting an operating profit of €21.3m for the year — down from just under €37.1m in 2024.

The company said the decrease in earnings reflects the “exceptional and severe fall in global dairy market returns that marked the second half of the year”.

"From August onwards, the significant decline in returns for cheese and butter, together with reductions across other dairy products, had a material impact on Dairygold, and the overall dairy industry,” the company said.

The company reported profit-after-tax of €1.4m reflecting the €15.8m drop in operating profit and a lower value uplift on financial assets of €2.1m.

Chief executive of Dairygold, Michael Harte, said the “significant deterioration in global dairy market returns” from August onwards was the “defining factor of the year”.

“But despite this volatility, Dairygold delivered a resilient financial performance, with a clear focus on supporting members, reducing net debt and progressing the core strategic initiatives that underpin the long-term strength and sustainability of the society.” 

“Throughout the year, we maintained a disciplined approach to operational efficiency and cost reduction, with €8.5m in cost savings, delivered through our Business Optimisation Programme,” Mr Harte added.

During the year, the company also invested €37.4m in capital expenditure and reduced net bank debt by €22m to €135.3m. At the end of 2025, the net asset value of the society stood at €422.4m.

Diarygold said positive market dynamics and favourable weather supported strong milk production, which saw milk suppliers produce a total of 1.44 billion litres of milk in 2025, a 4% increase on 2024.