Ornua, Ireland’s largest exporter of Irish dairy products, today published its operating and financial results for the twelve months ending 26th December 2021:
· Excellent trading performance with Group turnover up 6.9% to €2.5 billion.
· Kerrygold volume growth up 12%, with over 11 million packets of butter and cheese sold globally each week.
· Group EBITDA and Operating Profit up 0.7% and 1.3% respectively.
· Strong returns for Irish dairy farmers across 389,000MT of Irish product purchased, delivering an additional €78 million Ornua Value Payment to member suppliers, up 13.5% year-on-year.
· Ornua Ingredients doubled its footprint in the US market with the acquisition of Whitehall Specialties Inc, unlocking significant growth and innovation capacity.
· Approval granted for a €40 million expansion of Kerrygold Park to meet the growing global demand for Kerrygold.
· Bank facilities totalling €580 million successfully refinanced until 2026, supporting Irish dairy industry growth.
· Launched an ambitious five-year CSR & Sustainability strategy incorporating environmental, animal welfare, and community targets.
The brand Kerrygold achieved 12% volume growth in the year, selling over 11 million packets of butter and cheese globally each week. Approval was granted for the €40 million expansion of Kerrygold Park in Mitchelstown, which will increase Kerrygold’s capability to meet growing global demand.
Dairy Markets
While the Covid-19 pandemic continued to affect all aspects of the global dairy industry, its impact on global milk supply was not as significant as its impact on demand. Global milk supply was positive with flows up 0.8% year-on-year, while global demand was resilient against the backdrop of the pandemic.
Demand in the retail sector was strong, with lockdowns encouraging consumers to eat at home. While global retail sales of dairy products eased compared to 2020, volumes were above 2019 levels. Overall foodservice demand was below average, particularly in Europe, but recovered strongly in the US and countries with fewer public restrictions. Chinese export demand was exceptional, but high pricing stifled demand in other regions. Global export growth was not as strong as in previous years, however, as trade was affected by weaker output and supply chain issues.
Looking Ahead
The advantages and fundamentals of the Ornua business were evident in 2021 and will remain key as it grapples with the challenges of 2022 and beyond. The expansion of Kerrygold Park in Mitchelstown, commenced during this year and this facility will play an essential role in enabling the long-term growth of the brand for the benefit of Irish farming families and the wider Irish economy.
However, there are significant challenges ahead for Ornua and the wider dairy sector. The impact of inflation on raw materials, packaging, fuel, energy, and salaries will put significant competitive pressure on many businesses this year. Geopolitical instability, global trade barriers, supply chain challenges, and market volatility will also continue to have a significant impact and will need to be monitored and managed closely.
The Climate Action Plan and national targets will require enormous effort and close collaboration from all stakeholders. Ornua’s market-leading product portfolio and diversified global reach will underpin the Group’s long-term sustainability.
Photo: Ornua
