Annual Report and Financial Statements 2023

In 2023, Dairygold recorded a Turnover of €1.4 billion, a decrease of €254.7 million versus 2022, primarily reflecting the significant fall in market returns over the course of 2023. The Profitability delivered was also lower than 2022, with an EBITDA of €55.0 million and an Operating Profit of €23.9 million, a decrease of €13.5 million and €16.3 million respectively, a reflection of the Board’s decision to pay strong milk and grain prices, minimising the impact of reduced on farm margins.

Commenting on the results, Dairygold Interim Chief Executive, Michael Harte said:

“2023 was a difficult year for the dairy and tillage sectors, as market returns declined significantly from the unprecedented highs of 2022. Unfavourable weather conditions, combined with continued high input and processing costs, created a perfect storm for farmers and processors alike. As a farmer owned co-operative, Dairygold responded by paying strong milk and grain prices to Suppliers. Overall, the Society delivered a satisfactory financial performance in 2023, with all Businesses delivering to expectations. Dairygold continued to deliver on the growth ambitions set out in our Strategy.

A significant landmark on our journey was the successful acquisition of a 59% shareholding in Vita Actives Limited in June 2023, delivering a key objective of our Health and Nutrition business of growing a life stage nutrition business across key selected geographies, enhancing margin for the Business and diversifying earnings.

Sustainability continues to be a huge challenge for the dairy industry and one Dairygold is facing head on. Over 90% of Dairygold’s milk supply is participating in our new Grassroots Milk Supplier Sustainability Bonus Programme, which is a significant achievement. In addition, we are implementing a detailed decarbonisation plan across our factory operations, to deliver a 42% reduction in carbon emissions.”

Dairygold Chairman, Seán O’Brien, commenting on the 2023 results, said:

“2023 saw the Society deliver a strong performance, despite the numerous challenges, including weather, high input costs, the reduction in the nitrates derogation and addressing the sustainability challenges.

These challenges were met head on by our Members and the Business and Dairygold is in a strong operational and financial position to continue to sustainably grow both the Business and Members’ enterprises.

The significant challenge for the dairy industry is the uncertainty surrounding the future of Ireland’s Nitrates derogation, which is being provided by the EU Commission, in recognition of Ireland’s unique pasture-based milk production system. The removal of the derogation would significantly curtail milk production, impacting the viability of the entire industry. Strong leadership, including in-person engagement with EU Commission personnel, is needed now, to address industry uncertainty and allow farmers to plan for the future.

For its part, Dairygold will continue to engage at Member level to understand their position and at political level to seek clarity and certainty on this critical issue.”