FARM FOCUS Issue 89 – January 2025
2024 - A YEAR OF TWO HALVES employee numbers across a wide range of operating areas, along with restructuring of management teams. Seán Molloy, CEO
2024 proved a year of two halves. There were challenges aplenty in the first half of the year, with both weather on farm hampering supply and global uncertainty causing disruption in the commodity markets. Yet, as we moved through the year global commodity markets and farm-gate prices lifted to deliver improved margins and a positive end to the year. It is always difficult to provide guidance on the milk price beyond a three to four month period, as there are so many variables that impact global markets. However, signals are good and I would remain optimistic, certainly for the early period of 2025. As the new year progresses, however, solid demand will be required to counterbalance a growth in milk supply which is likely to be stimulated by increased on-farm profitability across many of the key milk producing regions. Overall milk supplies recovered to finish the year around 1.5% back on 2023 levels. This reflects a very considerable improvement on the expectation at the outset of the year. It was assisted by favourable grass growing conditions over the late summer and autumn months, a strong focus on delivering a progressive milk price to our suppliers and boosted by discounted dairy feed pricing. After a very difficult start to the year for grain growers, the harvest proved favourable and Tirlán has continued to deliver a strong supportive grain price to growers.
Driving efficiency
There was a strong focus on driving efficiency across the year. A major cost reduction programme was undertaken across Tirlán in 2024 to ensure the operating model and cost base is aligned with the reality of the market, our competitive set and the environment in which we are operating. This cost reduction programme resulted in a reduction in
New products for new markets
As we move into 2025, our key priority remains on adding value to every litre of milk and tonne of grain to ensure we deliver the best possible milk and grain prices for our Members. Global demand for milk and grain is growing, with consumer trends pointing to increased requirements for protein in key growing markets and those with aged populations. In tandem, our teams have been working hard on your behalf to innovate, win new customers and maximise returns from the marketplace. This effort will continue in the years ahead as we maximise the opportunity presented by our highly invested Innovation Centre at Ballyragget and our associated skilled workforce. Earlier this year, we welcomed the first batches of continental cheese off the production lines at our Kilkenny Cheese facility in Belview. The new facility provides us with new products for new markets via our joint venture partner Royal A-ware, and, most importantly, it also provides us with processing capacity at peak to target the highest returns from the marketplace.
Nitrates Derogation
We have also continued to advocate on your behalf, with a clear focus on informing and ensuring our political leadership remain focused on the importance of securing the Nitrates Derogation for rural Ireland. It is crucial that we all continue to enhance and maintain water quality all across our catchment area to give Ireland the best possible case for retention. We have seen increased Tirlán applications under the Farming for Water EIP funding. Anyone interested should contact their local Sustainability & ASSAP advisor.
discussion and interest in all of the teams working hard on your behalf to produce and bring our products to the global customers. Next year, we are planning on hosting an open day in another one of our facilities for suppliers within that region.
SGM
Members also voted overwhelmingly in favour of a proposal to change the rules of the Society to give more flexibility to manage financial investments on behalf of Members. Tirlán is a financially strong organisation and this equips the co-op to build greater resilience and to target the best possible returns for all Members, with a spin-out to Members due in early 2025. Progress on enhancing our Representative Structure is continuing, with a number of designated seats filled and our first Youth Group meeting taking place in 2024.
Tirlán Milk Quality and Sustainability Awards
Dairy remains a rewarding profession, with increasing demand for milk and proteins across the globe. At the heart of this is the high quality of our milk, and we want to take this opportunity to recognise the hard work and dedication of our suppliers, with our first Tirlán Milk Quality and Sustainability Awards due to take place after the spring. Please consider nominating yourself or a fellow farmer for an award when the applications open in January. Thank you on behalf of our management team for your continued support over the past year. Wishing you and your family all the best for 2025, Seán
Open Days
We were delighted to see so many of you attend our Ballyragget Open days, with great
Seán Molloy CEO, Tirlán
ALSO IN THIS ISSUE 2
Tirlán shareholders vote for rule change
7
December Milk Quality
4
River Slaney Project update
9
Tirlán milk supplier Open Days
5
Ahi Calf Care Events
10
Animal care planning for 2025
6
Tirlán FarmLife Launches Milk Solids Tracker
12
Tirlán Unearth Your Future Graduate Programme