Dale Farm, the Northern Ireland co-op which is owned by 1,300 dairy farmers, has reported a significant year-on-year jump in pre-tax profits to more than £19.6 million for the 12 months to March 2022.
A year earlier the co-op’s pre-tax profits had been in the region of just over £4.92 million.
The co-op also reported an improved turnover of more than £516.9 million for the year ended March 2022.
Dale Farm is owned by farmers across Northern Ireland, England and Scotland, who have an average herd size of 96 cows. The co-op also employs 575 people.
The Belfast-headquartered co-op, which was first established in 1955, said the strong financial performance in the year to March reflected its focus on “key strategic priorities”.
These included focusing on higher returning divisions and value-added markets and “proactive management of margins”.
Dale Farm also highlighted that favourable global commodity prices and the gradual easing of Covid-19 restrictions propelling foodservice volumes and reducing its operational costs.
The co-op has a portfolio of brands, including its core milk brand, Dromona butter and cheese, Mullins ice-cream, Spelga, and Rowan Glen yoghurt.
It also supplies dairy products for retail, foodservice and ingredients markets in more than 45 countries.
In its latest set of accounts Dale Farm highlighted that it is constantly “reviewing and responding” to the risks associated with Brexit.
The co-op said it had specifically implemented procedures to manage the risks associated with the Northern Ireland Protocol.
Dale Farm also stated that its long-term strategy is to “pay a competitive milk price and add sustainable value to its members’ milk” through a number of different approaches.
Although pre-tax profit and turnover both jumped in the 12 months ending March 2022, Dale Farm also reported exceptional item costs in the region of £1.82 million.
These related to redundancy costs of £237,000 and also exit costs of £992,000 as a result of the co-op’s decision to “scale back” its ice-cream business in Ireland because of “continuing difficulties”.
