Irish cross-border dairy co-op Lakeland Dairies has posted a pre-tax profit of €21.3m (£18.4m), up from €9.75m in 2023.
It says the result marks a strong performance “following an unprecedented collapse in global dairy markets in 2023, adding: “It was a critical year for the co-op as it executed its growth and development strategy including the purchase of Belgian business De Brandt which is delivering added-value returns.”
The co-op’s business strategy also saw it close three processing plants in 2023, “to ensure the co-operative is well placed to meet future market requirements with a realigned processing footprint to match milk supply profiles”.
Group revenues rose to €1.75bn from €1.6bn following an increase in value-add sales and an increase in general dairy market pricing particularly for butter in the second half.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for 2024 was €73.3m, compared to €43.4m in 2023.
Lakeland processed 2bn litres of high-quality milk collected from 3,200 farm families in 17 counties across the island of Ireland. Despite global market uncertainty, €998m was issued in milk payments to farmers throughout 2024, it added, “ensuring a balanced regional economy“.
Co-op chair Niall Matthews said: “The first half of the year was extremely difficult with challenging weather conditions coupled with stubborn input prices.
“Thankfully, as weather conditions improved, so did global dairy markets and the second half of the year was better. Our aim was to support our farmers who produce a world-class, sustainable and nutritious product with a sustainable and competitive milk price. In total, we issued €998m in milk payments to our farmers over the course of 2024. This proves the critical importance of the dairy industry in ensuring we have a balanced regional economy.”
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He added: “Despite the obstacles encountered by our farm families, Lakeland Dairies processed a record tonnage of milk solids in 2024. This is a testament to both the resilience of our farmers in the year and the fruits of better genetics and management at farm level.
“2024 was also an important year as we continued to step out our ambitious and innovative strategy, Foundations for a Better Future which aims to deliver sustainable prosperity to our farm families. The acquisition of the De Brandt butterfat business epitomises the strategic decisions we are taking to benefit Lakeland Dairies in the short and long term.
“To support our families to be able to plan effectively for the future, we embarked on a full-scale representation campaign with ministers and senior politicians in our jurisdictions on issues including the Nitrates Derogation, inheritance tax, TB and generational renewal. We will continue to press home the message of the critical importance of dairying to the economy as well as the huge work farmers have long been undertaking to make positive changes to improve our environment.
“Making strategic decisions to benefit our farm families and everyone in our co-op is the key focus of the Board of Lakeland Dairies. We have real momentum now as the decisions and investments we have made are moving us up the value-add chain to support the long-term operations of our farm families.”
CEO Colin Kelly added: “Following a challenging 2023, where everyone in the co-op displayed remarkable resilience, 2024 was a very successful year for Lakeland Dairies with turnover, EBITDA and profits all increasing. We were also pleased to return a competitive and sustainable milk price to our 3,200 farm families.
“2024 was one of the most strategically important years in the 130-year history of Lakeland Dairies as we continued to make strategic decisions to benefit the co-op and our farm families in the short and long term.
“The decisions we made as a business in 2023 and 2024 are now bearing fruit. We have in place a comprehensive, ambitious and exciting strategy called Foundations for a Better Future which is guiding us on a journey of added-value while ensuring we have an unrelenting focus on operational excellence and efficiency.
“I am hugely excited about the future for Lakeland Dairies, for our farm families, our people and our communities.”
