Keenan, the diet feeder manufacturer based in Borris, Co Carlow, recorded profits before tax of €1m on sales of €42m. This is a substantial improvement on 2012 figures, when a €1.5m loss was made on sales of €40m.
Chairman Gerard Keenan explained the strong progress has been the repositioning of the company towards a “value proposition for improving yield”. He says the company had been investing heavily in innovation and technology to drive long-term growth and this is now making returns.
He explained that this is about creating greater efficiencies on farm, especially relating to concentrate use. They are working with milk processors with “intouch”, a feeding technology to drive efficient production.
He attributed the growth in sales to the UK market, which has recovered strongly. “Farmers in the UK have expanded and they now need to make it pay,” he said.
Growth potential
France, currently their largest market, offers big growth potential post-quota, according to Keenan.
Although their customers in Ireland have traditionally had larger herds with higher yields, he says this system is relevant for all who are looking to expand, without making huge investment. He calls it “first step expansion” that is lower risk.
When asked how the weaker euro is affecting the company, he says that it is marginally positive as they buy steel in sterling and then sell the machines in sterling.
30,000 farmers run a Keenan feeder across the world and Keenan estimates that 25% of all milk and beef produced in Britain and Ireland is supplied by Keenan customers. The company holds number one market positions in France, Denmark, Sweden, South Africa, New Zealand and Australia.
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