Tirlán Co-op, Ireland's largest milk processor, updated suppliers on its performance in 2024 and gave an outlook for 2025 in an online presentation on Wednesday night.

Chair John Murphy said that after a difficult start to 2024, both for weather and price, dairy markets strengthened as the year progressed.

He said that the processor “ended the year around 1% lower on milk” than 2023, which he said was driven by a very strong performance in the last few months of 2024.

He noted that supply had been back more than 6% earlier in the year.

He said that the commissioning of the Kilkenny Cheese plant led to the production of 40,000t of continental cheese and the processing of 317m litres of milk in the new facility.

Supply growth

Looking ahead, co-op CEO Seán Molly said Tirlán forecasts milk supply growth in 2025 of between 3% and 5% - assuming, he said, that there were no fresh adverse weather events.

He did say that this increase would only make up for the drop in supply seen over the past two years.

Molloy also said that the year ahead should be a year that restores confidence for dairy farmers, noting that milk prices are expected to remain strong.

On the finances at the co-op, chief financial officer Michael Horan said that Tirlán ended 2024 with the “lowest debt level since 2013”.

He also gave an update on the spinout of shares to shareholders, saying it would likely happen in mid-May, around the time of Tirlán’s AGM.

In response to a question from a member on the timing of the spinout and Glanbia dividend payments, Horan said that the announcement of any Glanbia dividend would come before the spinout, meaning it would go to the co-op.

There were also questions on the possibility of a 13th payment to suppliers, which management said they wouldn’t pay, as the goal is to maximise payments month by month during the year.

On the price paid for milk, Murphy said the co-op has performed very well on the milk league and is working to get to the top.