Milk prices unlikely to rise this year – Tirlán
Michael Horan, Chief Financial and Secretariat Officer; Jim Bergin, Chief Executive Officer (CEO); John Murphy, Chairperson; Seán Molloy, CEO Designate and Lisa Koep, Chief ESG Officer. Photo: Dylan Vaughan
Milk prices are set to remain 'stable' for the rest of this year, as demand in some global markets remaims 'fragile', the incoming CEO of Tirlán has said.
"Probably over the next months we're looking at stability, driven by lack of supply as opposed to anything dramatic from a demand perspective. Demand is fragile enough in certain markets...at best for the year stability is probably where we are in and around the current base milk price."
Speaking at its financial results for 2023, Sean Molloy said the supply dynamic globally will be very important, but the longer term outlook for dairy demand looks set to continue to grow, while supply from the main producing regions continues to be challenged.
"You'd have to think the more medium to longer term, the outlook had to be positive."
Tirlan’s revenues fell by more than €500 in 2023, from just over €3 billion to €2.5 billion, after what it called a "turbulent" year in markets with commodity prices falling from record highs.
Describing its 2023 performance as "robust" in a challenging marketplace, its reported turnover of €2.53 billion, with operating profits €68.3m, a reduction of 5pc year-on-year the result of a number of factors including inflationary pressures and the commitment of the organisation to supporting farmers through a difficult period.
It saw its net debt reduced from €234m in 2022 to €155m last year, the lowest level in a decade.
The downturn in markets were reflected in significantly lower average milk and grain prices in comparison with 2022 - 44c/L (inc VAT) for milk down from 63c/L; and €205/t of green feed barley compared to €310.
The organisation paid a dividend of 19.058c per share to its Members for 2023, amounting to €6.5m.
Outgoing CEO Jim Bergin said the upcoming opening of the Kilkenny Cheese production facility at Belview demonstrated the forward-looking, innovative and dynamic business that Tirlán has become.
"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."
The joint venture with Dutch dairy company Royal A-ware will employ around 80 people full-time and deliver new products for new markets, with a plan to produce over 50,000t of continental cheese per year, including Edam, Gouda and Emmental cheese varieties.
