New figures released by Glanbia Ireland highlight how the company paid a total of €56m for milk in Co Cork last year.
Currently, Glanbia Ireland has 253 farm families supplying milk in the county and it has delivered “a solid performance” in 2020 despite global disruption caused by the Covid-19 pandemic.
Revenue for 2020 stood at €1.9bn, down 2.9% - a 2.1% drop was caused by volume decline with the balance due to “modest price deflation over the period”.
The company also reported profit after tax of €61m.
There was a sales decline in the Agribusiness side of the business because of very favourable weather conditions which led to good grass growth and a reduction in demand for both feed and fertiliser.
The domestic foodservice element of the Consumer business was significantly affected by the three lockdowns during much of 2020, but was cushioned by higher retail demand.
The milk price paid for the year averaged out at 35c/L, inclusive of VAT.
“Covid-19 significantly added to our operational challenges in 2020 but the speed at which the management team acted and adapted to safeguard the health and wellbeing of all was exemplary,” Glanbia Ireland CEO, Jim Bergin, said.
“Keeping milk on the shelves throughout the past year has been exceptionally challenging and tremendous credit goes to everyone who played their part.
“Milk volumes in 2020 increased by 4.9% on a like-for-like basis and the Group paid over €1.083bn to milk suppliers - an increase of 3.8% on 2019.
“This represents a significant source of income for farm families, for our rural and regional economies and highlights the impact of dairy farming on villages and towns throughout rural Ireland where our suppliers live, work and spend their farm income.”
Meanwhile, other highlights for Glanbia in 2020 include the contribution of over €1.08bn to the rural economy in the form of milk payments - up €50m from 2019; achieving Origin Green Gold Membership Status; surpassing the 3bn/L processing threshold; the shortlisting of the Twenty20 Beef Club in association with Kepak in the ‘Economic Value Creation - Support for Farmer Members’ category of the European Award organised by Cogeca; capital investment of €35m; construction of a new €15m Innovation Centre in Ballyragget, Co Kilkenny which is expected to deliver significant capabilities when it comes on stream in late 2021; the purchase of 248,300t of grain; and the sale of 395,000t of dairy products.
“Investment in our digital platforms paid dividends; these included our fresh doorstep delivery business mymilkman.ie; our agri and gardening input business; Glanbia Connect; and a new business-to-business ingredients trading platform - Glanbia Direct,” the CEO continued.
“Each recorded significant growth.
“Customers really turned to trusted brands during the pandemic and this helped boost revenue.
“We have rallied in the face of adverse global as well as domestic conditions, with substantial growth in sales of UHT milk and cream into SouthEast Asia.
“The Truly Grass Fed brand continues to be well-received in the US marketplace with good momentum building as distribution grows.”