9 April 2025
By Valerie Ryan
valerie@TheCork.ie

Business & Farming News

Dairygold Co-Operative Society Limited has today announced its financial results for 2024. Dairygold delivered a turnover of €1.4 billion, an increase of €10.6 million year-on-year, reflecting increased dairy market returns, which were partially offset by a decrease in milk production and lower feed and fertiliser prices.

Pictured announcing the Dairygold Annual Results 2024 are Michael Harte, Chief Executive, Ann Fogarty, Head of Corporate Affairs, Governance and Secretarial and Pat Clancy, Chairperson of Dairygold Co-Operative Society.
Photography by Gerard McCarthy photography
More info contact Denise Friar dfriar@dairygold.ie

Pictured announcing the Dairygold Annual Results 2024 are Ann Fogarty, Head of Corporate Affairs, Governance and Secretarial, Michael Harte, Chief Executive, and Pat Clancy, Chairperson of Dairygold Co-Operative Society.
Photography by Gerard McCarthy photography
More info contact Denise Friar dfriar@dairygold.ie

The Munster based dairy processor delivered an EBITDA of €65.4 million, an increase of €10.4 million (18.9%) on the 2023 EBITDA of €55.0 million, with improved financial performances being achieved by all Businesses, with Vita Actives Limited, in its first full financial year as a subsidiary of Dairygold, delivering on its financial objectives.

The Society’s year-end net bank debt was €157.3 million, an increase of €12.8 million (8.9%) on 2023. This was after investment in capital expenditure of €48.9 million (net of grants) and making the final payment of €13.1 million (or €7.0 million net of the sale of financial assets) for 59% of the share capital of Vita Actives Limited. This resulted in a net bank debt to EBITDA ratio of 2.4:1 and the overall net bank debt levels remain at a very manageable level.

Dairy Markets

Global dairy markets experienced a strong recovery, through the second half of 2024. Milk production remained flat across the major exporting regions, with the stagnation attributed to factors such as adverse weather conditions, elevated production costs and sustainability and regulatory pressures.

Dairy Ireland

In 2024, Dairygold collected and processed 1.38 billion litres of milk from Dairygold Milk Suppliers (down 2.1% year-on-year). Dairy Ireland delivered a satisfactory financial performance in 2024, with improved profitability. However, Dairygold’s milk price position was impacted, primarily as a result of reduced demineralised whey returns, and lower than expected milk supply. The 2024 performance was influenced by the stronger market returns, a higher milk price and lower energy costs. In addition, the product mix was amended and maximised, to reflect the lower milk volumes during the year.

In relation to Dairygold’s Strategic Capital Projects, the new casein plant was fully commissioned in early 2025. This investment secures the future of Dairy Ireland’s highest returning product, rennet casein, while providing Dairygold with the capability to further improve overall product mix, by diversfiying and

producing other products such as acid casein.

Milk Suppliers Census

Dairygold’s Milk Supplier Census concluded in October 2024, with a 94% response rate. The results of the census will inform our strategic decisions from a milk processing and commercial planning perspective for the next six years. In addition, the results will help determine the actions needed to ensure Milk Suppliers can continue supplying milk economically and sustainably.

Dairygold Health and Nutrition

Dairygold continued the growth and integration of the Vita Actives Business throughout 2024. We have strengthened the capability of the Business with further strategic additions to the team across key specialist areas including business development, customer services and regulatory, and implemented a number of technology enhancements, to support our ambitious growth plan. In addition, the business relocated to a larger premises in Tallaght, offering improved office and warehousing facilities.

Agri Business

Dairygold Agri Business delivered a 2024 performance in line with expectations, while also supporting Members through a challenging first half of the year. Feed demand was high throughout the year and overall sales of feed and fertiliser were ahead of 2023, by 14% and 18% respectively. Grain Growers successfully delivered over 100,000 tonnes of quality grain and beans to Dairygold, a testament to the resilience and skill of our Growers, in the face of challenging weather conditions. Dairygold paid strong prices for Grain, while Dairygold continues to promote the use of native Irish cereals and beans in our range of feeds. The Retail Business once again exceeded €100 million in revenue in 2024, while a highlight was the completion of phase 1 of our Mallow store development.

Sustainability

Sustainability remains a critical focus for the Business, and we continue to make advancements in this area. The protection of the nitrates derogation remains our top priority and we continue to advocate for its retention at the highest levels, engaging with the Taoiseach and other key Stakeholders in 2024, with EU Commissioners in early 2025. Our Milk Suppliers, via the Grassroots Programme initiatives, have continued to adopt best practices to address water quality, climate and biodiversity challenges, which also optimise efficiency on farm. The Grassroots Programme has been enhanced for 2025, with additional elements, including nutrient balance training and genetics.

Business Optimisation Programme

In March 2025, the Board of Dairygold approved the implementation of a Business Optimisation Programme, which in conjunction with 2025 budget initiatives is targeting €14 million in cost savings across the business over a three-year period, 2025 to 2027.The Programme follows a comprehensive review, initiated in November 2024, to identify the measures to structure the Business for optimum efficiency, cost competitiveness, margin enhancement and future growth. Improving competitiveness and optimising our core business performance is fundamental to achieving our 2030 growth strategy.

Commenting on the 2024 results, Dairygold Chief Executive Michael Harte said:

“Strong performances across all our Businesses, despite the challenges experienced in the early part of the year, helped Dairygold deliver a positive financial result for 2024. The outcome further strengthens the Societ y’s balance sheet and gives us the flexibility to continue to invest in higher margin activities.

Looking forward, our near-term business focus will be on optimising business efficiency, maximising the commercial return and leveraging the growing global Health and Nutrition sector. Our dairy processing facilities are some of the best in the world and will benefit the Business and our Milk Suppliers well into the future. Our Business Optimisation Programme will further strengthen our competitiveness and agility, allowing Dairygold to take advantage of the growth opportunities that the global dairy industry continues to offer in the various sectors we operate. Our Vita Actives Business is delivering on its financial targets and continues to build the capability of the team to deliver on its ambitious strategic growth plans into the future.

The entire organisation continues to be guided by the objectives of ‘Our Strategy, Our Future 2030’, designed to strengthen the Society’s ability to optimise opportunities, capitalise on our production capabilities and meet future challenges head on and with the ongoing support of our Members, Dairygold will continue to deliver for farming families across Munster.

Dairygold Chairperson Pat Clancy, commenting on the 2024 results, said:

“A very positive performance across the Business towards the end of 2024, as well as more favourable weather and stronger dairy market returns resulted in the Society delivering a strong set of results for its Members. 

On sustainability, Dairygold has taken a proactive but pragmatic approach to delivering measures which will positively impact our milk pool and Milk Suppliers well into the future, with our farm engagement efforts now focusing more on demonstrating how these measures can deliver cost efficiencies at farm level.

The slowdown in milk production expansion has highlighted the importance of our milk pool, to the overall performance of the Business. At a political and regulatory level, we have prioritised the retention of the nitrates derogation, to ensure the retention of current milk volumes, while at farm level, following our 2024 Milk Census we will also prioritise measures to address on farm succession planning, generation renewal and economic viability.”