Kerry Group and Glanbia both released strong financial results for 2015 this week, but the prospects for improving farmer milk prices remain dismal.

Kerry boss Stan McCarthy suggested that commodity price prospects now were as poor if not poorer than the last dairy price crash in 2009. He said every processor is going to be challenged – “I can’t answer to what degree milk price will be supported in 2016 but we did support it significantly in 2015.”

When questioned on Wednesday about the possibility of what might lead to a shift upwards in dairy commodity prices, Glanbia CEO Siobhan Talbot said: “It will take supply rebalance and re-stimulated demand, but it looks like it will be towards the back end of 2016 before we see the impact of either of these.”

Following rumours of delays in streamlining the new Belview plant, Talbot was adamant that the commissioning phase was well on track. “Plans are on track and I know it is taking time but that is because we have ambitions to process higher-value products. It processed over 300m litres last season and it will take time to move through the significant validation process.”

Talbot confirmed Glanbia Ingredients Ireland had increased overall profits in 2015 driven by increased supply from farmers during 2015. On future milk price, Talbot said: “Our long-term ambition is to build a sustainable price for our suppliers and tools like the fixed milk price schemes help us pay a market-led competitive milk price.”

McCarthy was also optimistic for the long-term future of the dairy business.

“I’m excited about dairy and excited about things we can do globally. It is our only vertically integrated product that feeds into our infant formula and nutrition pillars but it will be faced with commodity cycles. Hopefully Kerry suppliers will see the benefit in terms of milk price from the investment Kerry Group is making in increasing value-added products. We will look after the long-term viability of our farmers.”

One of the major Kerry investments recently has been the development of infant formula processing facilities in Charleville. When questioned on progress to date, McCarthy said: “It’s not easy. It’s a big journey, an expensive journey, but we are well capitalised to do it. It’s going well and we continue to increase the number of infant formula business-to-business relationships globally.”

In recent weeks there has been some speculation that China is going to tighten up on the number of suppliers of infant formula into China. McCarthy said: “The Chinese are determined to limit suppliers and bring in new regulations for approving manufacturers outside of China.”