Tirlán - Ireland’s largest dairy processor - announced results for 2023 which were generally in line with what we have already seen from the rest of the industry in the wake of a challenging year.

Turnover was 17% lower at €2.53bn, almost entirely driven by the drop in global dairy prices.

Operating profit was down 5% to €68.3m, while profit after tax slipped to €42.3m.

The processor said it paid €1.3bn to farmers for milk and grain during the year. Some ninety-five percent of milk suppliers participated in the sustainability action payment programme during the year.

During the year, the co-op reorganised its member representative structure to help deliver greater gender balance and increase young farmer inclusion.

The construction phase of the Kilkenny cheese joint venture with Dutch Royal A-Ware finished, with the commissioning phase now under way.

Net debt

Net debt at the processor dropped from €234m in 2022 to €155m last year - the lowest level since 2014. Tirlán paid dividends of €6.5m or 19.058c per share to members.

At a divisional level, the ingredients division processed 3bn litres of milk during the year.

Chief agri and ingredients officer and Tirlán CEO designate Seán Molly said that demand for dairy ingredients softened significantly, with prices down 24%.

Tirlán launched its first sports nutrition product, a whey protein isolate marketed business to business under the Promiko brand.

In agribusiness, revenue dropped 16% to €543m, as both prices and volume fell, with movements in fertiliser prices accounting for some of that.

The consumer division saw revenue increase by 4% to €380m, with the vast majority of that from the domestic Irish market.

Tirlán said it continues to focus on growing its Truly Grass Fed volumes into the US market.

Outgoing CEO Jim Bergin said: “As I prepare to step down as CEO of Tirlán, I am extremely excited for its future as we continue to make progress and show real leadership in the sector.”

Chair John Murphy said that the robust performance and strong balance sheet showed the true strength of the co-operative.

“The challenges faced by both the sector and farmers last year were unprecedented. Weather, input costs and regulatory changes combined to cause considerable concerns to our farm families who are already in the midst of considerable change.”

See full report and interview with Jim Bergin and Seán Molloy in this week's Irish Farmers Journal.