Operating profits at Dairygold slumped to a 10-year low despite a rise in revenues and increased milk production last year, as a “significant downturn” in global milk prices in the latter half of 2025 hit earnings.
The Cork-based milk processor said on Wednesday that its milk suppliers produced 1.44 billion litres of milk in 2025, a 4 per cent increase on the previous year.
Yet, operating profits at the co-operative society fell to €21.3 million from €37.1 million in 2024 on the back of a slide in global dairy prices in the second half of the year. That is the lowest figure since 2016.
Dairygold reported a 10 per cent jump in turnover to €1.5 billion for 2025 and said adjusted earnings came in at €52.7 million, even after a €12.7 million fall on 2024.
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However, that adjusted figure does not take account of interest bills of €22.3 million, which saw profit before tax at Dairygold plummet almost 92 per cent to €1.48 million from €17.8 million last year.
The co-operative initiated a cost-cutting programme during the year, which it expects to deliver €14 million in savings over the next three years. In 2025, Dairygold cut costs by €8.5 million, which it said was €1.5 million in advance of target.
“The significant deterioration in global dairy market returns from August onwards was the defining factor of the year,” said Dairygold chief executive Michael Harte in a statement.
“But despite this volatility, Dairygold delivered a resilient financial performance, with a clear focus on supporting members, reducing net debt and progressing the core strategic initiatives that underpin the long-term strength and sustainability of the society.”
Overall, Dairygold said that “positive market dynamics and favourable weather” in the early part of 2025 supported milk production. In its peak production week, the co-op processed 44.4 million litres. It paid an average price of 53.8 cent per litre, up from 44.9 cent in 2024.
“However, from August onwards, global dairy market returns experienced a significant downturn,” Dairygold said. “The sharpest decline came in August, just after peak milk processing, when finished product stocks across the industry were at their highest levels.”
Despite the global volatility, the milk processor “delivered a resilient business performance”, said Dairygold chairman Pat Clancy. “Looking ahead, the long-term fundamentals of the sector remain positive,” he said.
“Global demand for dairy products continues to grow, underpinned by population growth, urbanisation and the rising demand for high-quality, sustainable nutritional products. Dairygold is well-positioned to deliver on these opportunities for the benefit of our members.”
Harte added that Dairygold had maintained a “disciplined approach” to cost reduction and efficiency. The co-op also invested in its Vita Actives nutraceutical and nutrition business, which he said was “central” to its strategy to diversify earnings.
