Milk prices unlikely to rise this year – Tirlán
Source: The DairyNews
The incoming CEO of Tirlán, Sean Molloy, predicts that milk prices will likely hold steady for the remainder of this year, attributing this stability to a lack of supply rather than significant shifts in demand.
Molloy notes that demand remains delicate in certain global markets, suggesting that stability is the best-case scenario for the year, centered around the current base milk price.
Addressing Tirlán's financial results for 2023, Molloy emphasizes the crucial role of global supply dynamics in shaping price stability. Despite short-term challenges, he expresses optimism about the long-term growth prospects for dairy demand, especially as supply from major producing regions faces ongoing challenges.
Tirlán's financial performance in 2023 reflects the volatility of commodity markets, with revenues declining by over €500 million to €2.5 billion. Despite facing a turbulent market environment characterized by falling commodity prices, the organization describes its performance as robust, achieving a reported turnover of €2.53 billion and operating profits of €68.3 million.
Factors contributing to the 5% year-on-year reduction in operating profits include inflationary pressures and the organization's commitment to supporting farmers during challenging times. However, Tirlán managed to reduce its net debt significantly from €234 million in 2022 to €155 million in 2023, marking the lowest level in a decade.
The impact of market downturns is evident in the notable decrease in average milk and grain prices compared to 2022, with milk prices dropping from 63 cents per liter to 44 cents (including VAT), and green feed barley prices declining from €310 per ton to €205.
Despite market challenges, Tirlán remains committed to its shareholders, paying a dividend of 19.058 cents per share to its members for 2023, totaling €6.5 million.
Outgoing CEO Jim Bergin highlights Tirlán's forward-thinking approach with the upcoming opening of the Kilkenny Cheese production facility at Belview. Positioned as Europe's most efficient and sustainable continental cheese facility, the joint venture with Dutch dairy company Royal A-ware is expected to create around 80 full-time jobs and produce over 50,000 tons of continental cheese annually, including popular varieties such as Edam, Gouda, and Emmental.
Addressing Tirlán's financial results for 2023, Molloy emphasizes the crucial role of global supply dynamics in shaping price stability. Despite short-term challenges, he expresses optimism about the long-term growth prospects for dairy demand, especially as supply from major producing regions faces ongoing challenges.
Tirlán's financial performance in 2023 reflects the volatility of commodity markets, with revenues declining by over €500 million to €2.5 billion. Despite facing a turbulent market environment characterized by falling commodity prices, the organization describes its performance as robust, achieving a reported turnover of €2.53 billion and operating profits of €68.3 million.
Factors contributing to the 5% year-on-year reduction in operating profits include inflationary pressures and the organization's commitment to supporting farmers during challenging times. However, Tirlán managed to reduce its net debt significantly from €234 million in 2022 to €155 million in 2023, marking the lowest level in a decade.
The impact of market downturns is evident in the notable decrease in average milk and grain prices compared to 2022, with milk prices dropping from 63 cents per liter to 44 cents (including VAT), and green feed barley prices declining from €310 per ton to €205.
Despite market challenges, Tirlán remains committed to its shareholders, paying a dividend of 19.058 cents per share to its members for 2023, totaling €6.5 million.
Outgoing CEO Jim Bergin highlights Tirlán's forward-thinking approach with the upcoming opening of the Kilkenny Cheese production facility at Belview. Positioned as Europe's most efficient and sustainable continental cheese facility, the joint venture with Dutch dairy company Royal A-ware is expected to create around 80 full-time jobs and produce over 50,000 tons of continental cheese annually, including popular varieties such as Edam, Gouda, and Emmental.
