Irish dairy sector growth strong
The less dominant presence of major players such as New Zealand in overseas markets also helped.
Despite subsidy changes, the Irish Dairy Board (IDB) described last year as another successful one for the group. Farm incomes were maintained while additional bonuses were paid out.
Last year subsidies fell by 400 per tonne for butter and 300 per tonne for skimmed milk powder. Subsidies on casein fell by a whopping 1,200 per tonne as the EU took the first steps in weaning EU farmers off subsidies and on to direct payments.
On the plus side IDB says that new entrants will offer further opportunities to Ireland to expand its markets, contrary to expectations.
In 2004 IDB generated pre-tax profits of E37.9m, an increase of 3.8% on the previous year.
Despite the weakening of the dollar and a reduction in EU support prices, turnover rose 4.5% to E1.896 billion, while retained earnings were E30.1m, up 7.6%.
The healthy performance of the Kerrygold brand and overseas subsidiary companies were key factors. Kerrygold products achieved sales that were 5.2% higher.
The board’s international subsidiary companies all reported strong 2004 results.
The Adams Foods group in Britain increased its turnover by 11%.
In Belgium, IDB Benelux continued its programme of diversification in the prepared snacks and sandwich bar sector.
Its butter packing facility in France extended its export business while sales growth through IDB Deutschland was maintained.
Despite the weak dollar, sales of Kerrygold branded products in the US increased dramatically by 30% and new additions were made to the portfolio. This year sales are up 25% year on year in the US and the outlook remains strong, IDB managing director Dr Noel Cawley said.
“Implementation of the Luxembourg Farm Agreement, and WTO progress on trade liberalisation, pose serious challenges.
“But the Irish Dairy Board will continue to grow its branded and food ingredients business and meet the challenges posed by the new environment,” he said.
