Dairy board turnover nears €2bn
The IDB, which exports Irish dairy products to over 90 markets worldwide, reported that its turnover was up 4.5% to €1.976 billion and operating surplus increased 4% to €41.1m last year.
It said this was largely attributed to the worldwide success of the Kerrygold brand and the Pilgrim’s Choice brand in Britain.
However, managing director Dr Noel Cawley suggested that some disruption may occur in 2006 due to the implementation of the third phase of the Luxembourg Farm Agreement and the European Commission’s continuing internal market management policies.
“Equally, the competitive position on international markets is likely to be negatively influenced by the ongoing recovery in Oceanic output and a dynamic growth in production in both North and South America.”
Dr Cawley said the IDB has a strong branded business portfolio and a very effective marketing and distribution infrastructure, all of which are essential tools in building international recognition of Irish dairy products.
The board’s annual results show that surplus on ordinary activity after interest and taxation increased 19% to €36.8m. Revenue reserves at year-end were €293.8m, up 11% on the previous year.
Members’ funds increased 12% to €363.7m.
The report stated that EU exporters had difficulty competing for world market business due to dramatic cuts in export refunds despite higher world prices and a strengthening US dollar.
It said it was a satisfactory year for the board’s branded business, with Kerrygold sales up 2.8%. In Germany, Kerrygold butter maintained its market leadership despite increasing competitive pressures.
In Britain, sales of Kerrygold Softer Butter grew 16%. The Pilgrims Choice cheese range finished the year as the number two cheddar brand in the market.
Sales volumes of the Kerrygold brand in the US grew 20% across the range.
Strong growth is again forecast for 2006.
Kerrygold performance in third country markets was described as acceptable, with sales volumes up 10% on 2004. The brand was also launched in China and Australia in 2005.
