Dale Farm reports strong annual results as turnover tops £700m

Dale Farm’s results for the year ending 31 March 2023 showed a repeat of the price-driven surge in turnover and profitability seen across the industry for 2022.

However, unlike many of its competitors, Dale Farm managed to improve its profit margin in the period, with earnings before interest, taxation and depreciation gaining 27%, on a 23% increase in turnover.

“It was a good year for dairying, both for farmers and processors,” Dale Farm chief executive officer Nick Whelan told the Irish Farmers Journal in an interview coinciding with the release of the results.

'Managing costs'

“There is not one reason for the improvement in margin, rather it has been driven by a laser focus on lean processes, managing costs throughout the business and concentrating on where we can get efficiencies.”

Whelan said he feels that the co-op has a competitive ongoing milk price.

He highlighted the drive within the co-op to increase the strategic positioning of the business, concentrating on areas where there is scale, technological solutions and a strong brand position.

On the technology side, he pointed to the two new patents granted during the past 12 months amid a strong focus on research and development.

Growing milk pool

The co-op is seeing robust growth in its cheddar business, both in the consumer and business-to-business segments.

Whelan said Dale Farm has a 900-million-litre milk pool, which he expects will continue to grow in the years ahead through advances in cow genetics and feeding systems. The co-op had 23 new suppliers last year and about 15 retirees.

On the outlook for milk prices, Whelan saw no reason to disagree with the general consensus that milk prices would rise towards the end of the year.

However, he was much more optimistic about the longer-term prospects for dairy, saying that the ability to sustainably and reliably produce “nutritious, tasty protein” means “the outlook is really good for dairy farmers”.