Over the last two days, the RDS, Ballsbridge in Dublin have hosted ‘Finding Common Ground’, a festival on biodiversity and sustainability. As part of the event, the RDS Livestock Awards also took place…
Tirlán, Ireland’s leading farmer-owned dairy and grain co-operative, has published its Annual Report and Accounts for 2023, reflecting a resilient performance during an extremely challenging year for the Irish dairy, grain, and wider agriculture sector.
Milk payments are a huge driver of the rural economy. The co-operative paid out €1.3 billion for milk in 2023, with €170 million of that going to farm families in Wexford. In addition, it delivered a market-leading price for grain. The only two counties that received more in milk payments from the company were Waterford (199m) and Kilkenny (240m).
Some key highlights of the Annual Report include:
– Group turnover of €2.53 billion, a 17% year-on-year decrease, as commodity market prices fell from record highs;
– Progress on Living Proof sustainability targets through a 6.3% reduction in on-farm carbon footprint from 2018, with over 95% of milk suppliers participating in the €16 million Sustainability Action Payment programme in 2023;
– Modernisation of Co-op Member representative structure to deliver greater gender-balance and inclusion of young farmers;
– Focus on innovation in dairy and plant-based products for new markets;
– €220 million Kilkenny Cheese Joint Venture continental cheese facility in commissioning phase.
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Commenting on the 2023 results, Tirlán Chairperson John Murphy said that the robust performance and strong balance sheet showed the true strength of the co-operative as it was able to assist its farmers in early 2024 with significant weather-related price and feed supports. He emphasised that Tirlán remains focused on paying the best possible milk and grain prices to suppliers and that a focus on debt reduction, in addition to a new Investment Fund of more than €210 million, means that the business is well-positioned for strategic growth and expansion into the future.
The challenges faced by both the sector and farmers last year were unprecedented. Weather, input costs, and regulatory change combined to cause considerable concerns for our farm families who are already in the midst of significant change. However, the organisation remained strong and supportive through its advisory teams who engaged with our farm families on a daily basis.
“We have made major investments in diversified production facilities, alongside developing our R&D and commercial teams, and are constantly seeking new opportunities for our expanding portfolio of brands on international markets.
“It was wonderful to see our Members approve a series of proposals to modernise our Co-op delivering greater gender-balance and involvement of our younger farmers. In addition, our new Governance Academy will help to build deeper knowledge of our Co-op for the future.
“I would also like to pay tribute to outgoing CEO, Jim Bergin, for his authentic leadership and his advocacy for Tirlán farmers. The successful establishment of Tirlán as a stand-alone 100% farmer-owned co-op is his legacy, and we all owe him an enormous debt of gratitude for his work, vision, and commitment.
“We are fortunate to have someone of the calibre of Seán Molloy to take Jim’s place as CEO. I and all the members of the Board look forward to working with Seán in the years ahead as we build the future of Tirlán together.”
Speaking about the 2023 results, Tirlán CEO, Jim Bergin, said that the organisation’s overall performance in a turbulent year reflects the underlying strengths of the business. He said that the upcoming opening of the Kilkenny Cheese production facility at Belview in Kilkenny demonstrated the forward-looking, innovative and dynamic business that Tirlán has become.
Speaking to Wexford Weekly, Jim Bergin commented:
“Agribusiness faced many challenges in 2023 and I am proud that we still managed to maintain competitiveness and deliver strong supports for our farmers. While circumstances remain challenging, we remain optimistic as we look to the future as we have a strong, stable core business that is well-positioned to continue to invest and innovate for the future.
“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 for the sector. In a matter of months the Kilkenny Cheese production facility is on track to open as Europe’s most efficient and sustainable continental cheese facility enabling us to bring new products to new markets. We are continuing to meet and deliver our Living Proof sustainability targets by positive action across all elements of our business.”
Total turnover for 2023 stood at €2.53 billion, a 17% decrease compared to 2022, as prices fell from record highs as a result of a decline in global dairy markets. Operating profits were €68.3m, a reduction of 5% year-on-year.
The downturn in markets were reflected in significantly lower average milk and grain prices in comparison with 2022 – 44 cent per litre (cpl) (including VAT) for milk down from 63 cpl; and €205 per tonne of green feed barley compared to €310. Tirlán provided a series of supports during the year.
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