Following an unprecedented collapse in global dairy markets in 2023, cross-border dairy co-operative Lakeland Dairies was back in clover last year as its turnover and profits increased again and it returned a competitive and sustainable milk price to its 3,200 farm families.
And it came in what 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.
Group revenues increased to €1.75 billion (£1.51bn) from €1.6bn (£1.39bn), which came as a result of an increase in value-add sales as well as an increase in general dairy market pricing particularly for butter in the second half of the year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for 2024 was €73.3m (£63.45m), compared to €43.4m (£37.6m) in 2023. Net profit before tax was €21.3m (£18.4m) which is a significant improvement on the loss of €9.75m (£8.44m) in 2023.
Lakeland Dairies processed two billion litres of high-quality milk collected from 3,200 farm families in 17 counties across the island of Ireland.
And despite global market uncertainty, €998m (£864m) was issued in milk payments to farmers throughout 2024, ensuring a balanced regional economy.
Group chair Niall Matthews said: “The year 2024 brought volatility for the farm families of Lakeland Dairies and their co-op. 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.
“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.”
He added: “It 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.”
Lakeland Dairies group chief executive 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. It was one of the most strategically important years in our 130-year history as we continued to make strategic decisions to benefit the co-op and our farm families in the short and long term.”