The Ornua value payment, the return given to dairy farmers from Kerrygold, has increased twelvefold over the last 15 years.
In 2010, the payment was worth €6m to Irish dairy farmers, whereas it was worth €74.3m in 2025.
The payment is what is paid back to member co-ops by Ornua and is derived from the extra value Ornua generates from the marketplace through its branded products, such as Kerrygold butter and Dubliner cheese.
It also includes some additional revenue from commodity markets.
The Ornua value payment is an additional payment on top of the price Ornua pays for the dairy products it purchases from member co-ops.
For example, cream purchased by Ornua to make butter is paid at prevailing market values, with the value payment on top of this.
Up until 2016, suppliers to member co-ops paid a levy to Ornua, which was used to fund the marketing of Kerrygold.
The levy, which cost farmers €5m to €6m per year, was discontinued in 2016, with the full marketing budget for Kerrygold since funded by Ornua.
Over the last five years, the value payment has averaged €73m per year, up from an average of €36m in the five years prior to that. Between 2010 and 2014, the value payment averaged €9.5m per year.
The increased volume of dairy being handled by Ornua since quotas were removed is a factor in the increased value payment, but it is primarily due to the huge success of Kerrygold internationally, particularly in the US.
According to Ornua, the value payment is equivalent to 2c/l on every litre of milk it purchases from its members.
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