New corporate identity for dairy exports
Ornua chief executive Kevin Lane, said: “Our business has been steadily building a global infrastructure to ready itself for the opportunities that post-quota will bring. A business with such reinvigorated ambition needs an identity that is fit for a very bright future.”
The board has invested €200m over the past five years in developing its brands, the most successful of which is Kerrygold. Ornua will supply dairy branded products and ingredients into more than 110 overseas markets on behalf of dairy processors.
Meanwhile, an IFA study predicts the dairy sector can create 9,500 jobs and deliver €1.3bn in additional export revenue in the coming years.
IFA president Eddie Downey said: “Farmers are excited at the prospect of being able not only to grow their milk production, but also to better run their farms without the counter-productive management impositions quotas had created on them over the years.
“The co-ops have invested in additional processing capacity. The Irish Dairy Board has identified and started to establish new routes to export markets. That said, most farmers who plan to expand will proceed with moderate, cautious and sustainable growth,” he said.
A recent Ipsos MRBI survey for AIB Bank found dairy farms are carrying debts of €62,000 on average. This compares with €800,000 on the average Dutch farm, and €1.4m on the average Danish farm, the sector’s global leaders along with New Zealand.
The same study suggests 63% of dairy farmers will increase milk output by 2020, but of these, only 8% will boost production by more than a third. Farmers intend to increase yields per cow (44%), improve grass management (14%) with just 45% planning to increase cow numbers.
The Department of Agriculture, Teagasc and other dairy sector leaders will host events outlining the growth strategy.
