Co Cavan dairy processing co-operative Lakeland Dairies has reported its financial results for 2023 with the global dairy market collapse significantly influencing revenue and profit. Following record profits and unprecedented dairy market returns in 2022, the Cavan-based company seen Group Revenues reduce to €1.6bn from €1.9bn which was in line with the collapse in global dairy markets. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for 2023 were €43.4m reduced from €60.2m. Operating Profits decreased from €32.5m to €14.8m last year. According to the report, Lakeland Dairies processed 2bn litres of high-quality milk collected from 3,200 farm families in 17 counties across the island of Ireland. Despite global market uncertainty nearly €800m was issued in milk payments to farmers throughout 2023 across, helping to drive a balanced regional economy. In terms of consumer demand, domestic markets across Ireland and the UK held steady.
In a statement issued to Northern Sound, Lakeland Dairies Chairperson Niall Matthews said; "In what was one of the most challenging years for the dairy industry, farmers and processors both demonstrated tremendous resilience in the face of enormous pressures. Whether it is inside the farm gate or at processing level, we are all committed to maximising efficiency to ensure that we were as lean as possible. Thankfully the global markets in 2024 have been more positive which is critical given the very challenging weather conditions we have endured since the end of 2023.
"At all times, we are fully committed to returning the best possible price to our farm families who do huge work producing world-class, safe and sustainable milk. This forms the bedrock of our 240 products which are enjoyed by customers and consumers in over 100 global markets. We paid out €800m in milk price last year which supports farm families as well as driving a balanced regional economy. The economic importance of the dairy industry cannot be underestimated.
"Given the recent market volatility as well as huge regulatory and policy uncertainty, it is more important than ever that we look to the future in a very strategic manner. Following rapid dairy industry growth and the expansion of milk production and processing over the past decade, the industry is transitioning from a supply volume perspective into more value-added product positioning. This is our key strategic focus as a Board and as a co-op. We are making very definite steps to move up the value-add chain to support the long-term operations of our farm families."
