Wednesday, 31 May 2017 13:55

Kerrygold’s record sales

Written by  Sudesh Kissun
Kerrygold sales have jumped 20% in the US last year. Kerrygold sales have jumped 20% in the US last year.

Irish dairy co-op Ornua says revenue grew 9% last year.

In its 2016 operational review Ornua says turnover rose 9.1% to $2.39 billion and gross profit jumped 18% to $69 million. Ornua closed the year with net cash of $90m versus net debt of $27m in 2015.

Its balance sheet shows net assets of $800m, allowing flexibility to fund future growth and help its members with working capital.

Ornua chief executive Kevin Lane referred to “excellent performances in established markets such as Germany and the US, and more expansion in the developing markets of Africa, China and the Middle East”. This was despite market volatility and political uncertainty.

“We have built a diverse global business by investing in our brands, technology, in-market presence and our people.

“[So we] continue to deliver for our members and for the Irish dairy industry, even in more uncertain market conditions.”

Irish product purchases rose 7% year-on-year, outstripping the rise in Irish milk supply of 4%. Over the last four years, Irish purchases have grown 33%.  

A members’ bonus of $23m included some of a windfall from selling DPI Specialty Foods for $8m (in addition to a DPI-related bonus of $24m previously paid in 2016).

In May 2016 Ornua suspended the monthly Ornua milk levy in recognition of the hit Irish dairy farmers had taken from the global dairy downturn.

The co-op’s Kerrygold had record annual global retail sales of $1.4b. Ornua aims to move Kerrygold from being a world-class butter brand to an instantly recognisable $1.6b global dairy brand.

In 2016 it launched Kerrygold Yogurts in Germany, Kerrygold Spreadable in UK and continued rolling out its Kerrygold Irish Cream Liqueur in Europe and the US.

Ornua trades in 110 countries.

2016 highlights

Record Kerrygold global retail sales of $1.4b including 20% volume growth in the US

Kerrygold Yogurts launched in Germany; 10m pots sold in first six months

Opening of Kerrygold Park, a 50,000t butter production and packing plant in Co. Cork

Commissioning and opening of Al Wazeen, Ornua Saudi Arabia’s cheese plant in Riyadh

Integration of Shanghai dairy manufacturer Ambrosia Dairy into Ornua Asia

Acquisition and integration of US powder ingredients business CoreFX Ingredients.

More like this

Irish dairy on enviro radar

The expansion of the dairy industry in Ireland is starting to affect the environmental health of the country’s lakes, rivers and estuaries.

Safety software winner off to Uk

A kiwi company that believes its computer software can help reduce farm accidents and fatalities is joining the New Zealand 2019 Agritech mission to UK and Ireland.

» The RNG Weather Report

Featured

Soil moisture: no more looking over the fence

Farm manager Bryan Mitchell describes as brilliant the SCADAfarm systems that allow him to remotely monitor and manage the irrigation of his 300ha of leased grazing land near Kirwee.

 

Separation gives constant result

Effluent separation offers a number of unique advantages, and opportunities that other systems don’t offer, says farm equipment manufacturer Rakaia Engineering Ltd (REL) Group.

Cultivating the right way

Cultivation of paddocks is common on farms at this time of year. It’s also a time when local storms may occur, adding substantial risk to an important farming practice.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Angry as usual

The usual culprits are angry at hearing last week that the Government and the agri sector will work together to…

Vladimir the dairy farmer

Russian President Vladimir Putin is a master tactician in taking advantage of international conflicts.

» Connect with Dairy News