Profit at dairy cooperative Dale Farm continued to rise in the last financial year, despite falling revenues.
New financial figures disclosed by the company show its turnover fell by £96.6m (13.3%) year-on-year to £631.4m for the 12 months ending March 2024
But Dale Farm’s net profit before tax still increased by £3m (11.2%) to £29.8m in the trading period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) also rose 4.4% year-on-year to £44.9m.
The dairy sector has experienced extreme volatility in the past two years, with inflation driving input costs for many producers, which in turn was passed on.
Last year’s report from Dale Farm revealed a 20% (£137m) surge in annual revenue.
The latest reporting suggests the volatility in the market has eased.
Dale Farm said it still managed to improve its turnover to profit ratio in the year to March 2024.
Group Chief Executive Nick Whelan put that down to strategic decision making, the collective efforts of the 1,200 people employed by Dale Farm, and the farmers who supply the business.
“Every decision we take as a cooperative is about ensuring the profitability and sustainability of our members’ farm businesses,” he said.
“Through strategic investment we are delivering growth while paying a competitive milk price to the 1,300 farmers who own the business and supply us with healthy, nutritious, quality milk.
“Through our strategy – a focus on research and development and investing in the strongest areas of our business – we are growing, and these results show that strategy is working.
“We have developed a high-performance culture at Dale Farm where our team members across the business are stepping up to the challenge, using their creativity and diligence to ensure we are the best that we can be.”
The latest announcement from Dale Farm comes just weeks after the dairy co-op commenced work on a £70m upgrade of its cheddar processing facility near Cookstown.
The cooperative said the upgrades at the Dunmanbridge facility will increase cheese production by 20,000 tonnes per year.
“Our ambition is to lead the sector, not just in Northern Ireland but across Europe,” continued Mr Whelan.
“Our £70m investment in our cheddar processing facility at Dunmanbridge will ensure we remain at the cutting edge of innovation and build on our reputation for quality, consistency and sustainability.
Dale Farm chairman Fred Allen, said: “Last year the dairy market experienced volatility, and inflation continues to affect input costs for producers.
“Against this backdrop, over the past year we were still in a position to pay a competitive milk price, with the average price paid totalling 35.2p per litre in 2023/24.
“It is more important than ever that we continue to invest in those parts of the business that deliver the highest returns for our farmers.
“The profitability of the cooperative and continued investment is key to securing farm businesses for future generations.”
