Operating profits at farmer-owned dairy and grain co-op Tirlán were €63.3 million in 2023 – down by 5%, year on year.
Total turnover for 2023 was €2.53 billion – a 17% decrease, compared to the previous year.
The falling profits were a result of inflationary pressures, the company’s commitment to supporting farming families in a challenging market, and a drop in commodity prices.
Milk prices fell to 44 cent per litre (CPL) from 63 CPL in 2022, and green feed barley prices were €205 per tonne, down from €310.
The company continued its focus on tackling debt in 2023, reducing it from €234 million in 2022 to €155 million last year.
Supports
Tirlán reported that it had provided a series of supports to farm families in the challenging year.
These supports included a high price paid across the peak supply months, feed supports, and a bonus of €5.8 million to members who traded through the company’s agribusiness stores and online.
It also paid a strong dividend of 19.06 cent per share to members for 2023, amounting to an investment of €6.5 million.
The co-op’s brands, which include Avonmore, Kilmeaden, MyMilkman.ie and the Truly Grass Fed range, continued its focus on innovation, including the development of Avonmore Oat Drink using Irish oats.
The business has also continued to expand in new markets, with the Avonmore Professional UHT range entering markets in Malaysia, Thailand and the Philippines.
‘We Remain Optimistic’
Tirlán chairperson John Murphy commented on the results, saying, “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.
“The organisation remained strong and supportive through its advisory teams, who engaged with our farm families on a daily basis.”
Murphy added that, despite fluctuating prices, the quality of Tirlán’s products and raw ingredients remains high.
Outgoing chief executive Jim Bergin said, “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.”
Bergin highlighted the hard work of the 5,000 farm families and 2,300 employees in the company.
He will be succeeded as chief executive by Seán Molloy.
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