FARM FOCUS
Issue 93 – January 2026
CHALLENGING FIRST HALF BUT RECOVERY WILL OCCUR Dear Suppliers, In recent days I have had the opportunity to travel the country for our 2026 Business and Market Outlook meetings. I would like to thank you for taking the time to attend and hope that you found the engagements of value. For those who could not join us, one of my key messages was that while the first half of this year ahead will undoubtedly bring challenges, it is important to recognise that our markets are cyclical in nature and recovery will occur. My second key message was that Tirlán, your Co-op, will do all in its power to help you through this period of market downturn. Despite significant obstacles over the past 12 months – including market volatility and tariff uncertainty – our business closed the year in a very strong financial position. This allows us to enter 2026 on a robust footing.
Year in Review
We also spoke about how, at the start of last year, we committed to doing everything in our power to retain the nitrates derogation – and alongside a united industry we delivered on this promise in December. The three-year extension brings certainty and is a great relief for our milk suppliers our focus now is on retaining the derogation beyond 2028.
At our farmer meetings I outlined the following highlights from 2025: •
2025 was a record year for milk supply – with volumes up over 7% compared to 2024 and solids up over 8%.
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All of our facilities operated at maximum capacity at peak, underlining the importance of having the capability to allow you our suppliers grow output when the opportunity presents.
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On the commercial side, we successfully placed over 40,000 additional tonnes of dairy ingredients on the market and closed the year with near record-low stock levels.
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Our Agribusiness delivered a very strong performance, driven by the Milk Solids programme and strong results across key categories. Consumer Foods also delivered another strong year, despite a high-cost input environment. As a result of this commercial performance, we paid a weighted average milk price of 54.6cpl including constituents. Combined with Agri trade supports, Co-op dividends and the Glanbia plc share spin-out, this ensured that Tirlán delivered internationally leading total member returns last year. Continuing on this journey remains our clear ambition for the years ahead.
We also took decisive steps to address what I believe is the defining challenge for farming in our time: generational renewal. Tirlán has put real funding behind supporting young farmers and is advocating strongly for similar action at national and EU level.
Global Volatility and Long-Term Outlook
In looking at future milk price, given the current extreme volatility it is very difficult to have any strong degree of accuracy beyond a 3 to 4 month period. Currently we are paying somewhat ahead of market returns. This reflects our desire to support our milk suppliers over what are very high-cost production months. Conscious that milk prices at these levels will present real economic challenges on farm, Tirlán will act in whatever way we can to support our farmers – and we have already significantly started this journey with our €5.5 million Agri support package which was announced in December.
All of our efforts on farm and within the business are, of course, taking place against a backdrop of incredible volatility across the world. Not in recent history have we witnessed such global turmoil and uncertainty.
Furthermore, and critical this year, efficiency and cost disciplines remain a strategic priority.
Tariffs, and their uncertainty, have become a real challenge for business – with the latest Chinese retaliatory tariff of 42% on some dairy products fundamentally altering the potential of this market should these tariffs remain.
Above all, we will continue to build a Co-op of the future: one that is progressive, financially strong and farmer focused. A Co-op that maximises total returns to our members, a business that is proud to speak out for our farmers and a Co-op that attracts and develops the very best talent.
However, despite this, the long-term outlook for food and dairy remains positive. Global demand is set to outpace supply, particularly in regulated developed economies. Food security remains a real and growing issue. This creates opportunity for Tirlán and our members.
I also highlighted that a major milestone in 2025 was the successful completion of the €0.5bn transaction to complete our bond settlement – resulting in Tirlán Co-op now being effectively debt-free.
(7cpl) and February (5cpl). We have confirmed equally strong support for next autumn and winter milk supplies.
We will also continue to pursue opportunities through our investment fund.
On behalf of the management team, thank you for your continued support of Tirlán over the past year. Finally, a reminder to please be conscious of farm safety through the busy spring period.
2026 Milk price outlook
At the meetings we also spoke about our €126 million Whey processing investment which was announced for Ballyragget last autumn. This delivers on our commitment to add greater value to your milk
Turning to 2026, our priority is clear: delivering a strong milk price. We have already committed to seasonality bonuses for December (5cpl), January
CEO, Tirlán
ALSO IN THIS ISSUE 2
Food Ingredients Europe
6
SFA Bursary Awardees
10
Animal Nutrition
3
Supporting Farmers
7
CSR Update, AGM Notice
11
Slurry Spreading
4
Dairy Support Package
8
SCC and Blue Tongue
5
Future Farms, Farming for Water
9
Animal Health