How much milk does Dale Farm process every year?

Last year milk supply was up 7% to 850m litres. Over the last three years we have reversed the trend where the co-op lost 300m litres of milk over a 10-year period. However, we are not looking to take in more milk just to be the biggest. It is about utilising assets and investing to add more value to the current milk pool rather than just getting bigger for the sake of it.

How has this growth occurred?

We have refocused the business around our people and culture and driving efficiencies across the business. We also went out and talked to farmers about our future strategy. We delivered improved returns and increased milk price. We are now delivering earnings (EBIDTA) of £21m (€23.5m).

What are the main products you manufacture?

Cheese is our core product at Dale Farm. We produce some 55,000t along with 18,000t of butter. Cheese represents around two thirds of our milk. Ice cream, desserts, beverages and feeds are also key to our business. Around £80m of our business is branded and includes the Dale Farm, Fivemiletown and Dromona brands.

Are you concerned by a hard Brexit?

We have delivered solid financial performance despite all the distraction surrounding Brexit so far. A no-deal Brexit is a serious threat to Northern Irish agri food and consequently farmers.

Almost 14% of all food and drink produced in the UK is exported to the EU.

If there is a no-deal Brexit, this trade stays in the UK and this will collapse the market for everyone in Britain and Ireland

What impact will this have on dairy?

One third of the milk produced in Northern Ireland must go south for processing. This means than some 800m litres needs to cross the border to be processed. Of the two thirds or 1.6bn litres that are processed in the north, 50% of this is sold in Britain.

Another 30% is destined for EU markets, so there is a huge dependency on the Irish, UK and EU markets for milk produced in Northern Ireland. On top of direct tariffs on selling into the EU, there could also be non-tariff costs, including checks and delays at borders. A potential loss of export dairy markets could redirect product into the UK market and collapse prices.

How would this impact Dale Farm?

Dale Farm is working closely with the UK government to find a solution for the sector. Dale Farm has the capacity to process all its milk in Northern Ireland across our sites.

Nick Whelan will be speaking at the Agricultural Science Association conference in the Lyrath Hotel on Friday, 13 September.