There was a definite theme in meetings between management at Ireland’s major dairy co-ops and the Irish Farmers Journal held throughout April and May to discuss the individual results at processors. That theme was that 2025 was very much a year of two halves which saw high dairy commodity prices – and high milk prices – until the middle of the summer, followed by a rapid reversal of those prices in the latter months of the year (see figure 1).

Digging into the numbers a bit we can see that when it comes to milk processed, Tirlán remains the largest dairy co-op in the country by some margin. Lakeland is second, with Dairygold and Kinisla similar in size (see figure 2). It is notable, but fairly meaningless, that in the period covered by the most recent annual reports there were 10.89bn litres of milk processed across the industry, producing revenues of €10.89bn.

The revenue results presented by the processors includes revenue which has little or nothing to do with milk, including cash from agrisales, from associated businesses and, particularly in the case of Aurivo, from mart sales.

There is also a couple of caveats with some of the numbers in these charts. Financial data for ArraTipp*** is only for the ten-month period between March and December 2025, as the merger between Tipperary and Arrabawn didn’t complete until the end of February last year.

Data for Dale Farm** is for the 12 months ended March 2025, as that processor has a different financial year-end. Numbers for that co-op have been converted from sterling at a rate of €1.15. Kinisla* has produced very limited financial data for 2025.

All that being said, there is some use in trying to compare performance based on milk delivered and profitability. As the only number on profitability we have for Kinisla is EBITDA (earnings before interest, depreciation, taxation, depreciation and amortisation) we will use that one across processors.

By taking EBITDA divided by litres of milk processed we get to a figure of profitability per litre of milk delivered (see figure 3).

This shows Carbery well out in front, with Kinisla in second place. The erstwhile merger explorers of Aurivo and Dale Farm are neck and neck in third, with the rest following up at a similar level.

These numbers are a reflection on how good the processor is at turning milk into money, but is also a reflection on the business as a whole. In the case of almost all the processors, the business is owned by its suppliers who feel the success of the business through the milk price. Kinisla is the exception here, with the co-op owning 70% of the processor, but as Kerry Group’s payout from its 30% share of Kinisla is fixed at €7.5m a year, even there a more successful processor should be reflected in milk price.

It is important to note that this comparison is based on one year’s data, and there can be significant variations from year to year depending on where co-ops are in their investment cycle, what products they produce and what is happening in markets.

Taking a longer view of the majority of co-ops in Ireland, we can see that over a six-year period the average pay-out per cow per year is surprisingly similar across the industry. This and further insights into the co-ops performance is discussed on this week’s Inside Dairy podcast, which is essential listening for every dairy farmer.

Farmers tend to be very loyal to their own co-op, and co-ops generally are very focused on maximising the returns to their suppliers. A look at the results for the most recent 12 months available shows that, despite the challenges faced, the returns for supplying milk were generally quite strong across the industry, with some variations between processors.

Looking over the longer term, the difference between different processors narrows even further as fluctuations in demand and global prices even themselves out.

The one exception to this is Carbery, which has consistently been towards the top in terms of returns. That co-op has an unusual structure, but it also owns the Synergy taste and flavours business, which has little to do directly with milk produced in Co Cork.

The co-ops in Ireland generally concentrated on investment in stainless steel in the years following the end of the milk quota system. The growth in milk supply over the years since has meant those investments have been put to good use.

The industry, however, has now entered a new phase where it increasingly looks like the days of ever-expanding milk supply is over.

The current challenge for the co-ops is how to position themselves to grow earnings on static milk supply. Some, such as Dairygold, have already made investments in the ingredients space. Tirlán is increasing its capacity in higher value products, while Aurivo and Dale Farm have looked to the scale and flexibility which could be achieved through co-operation.

Whatever decision is made, it is clear that the winners will be those who can sustainably return the most cash to their suppliers.