Longford farm families see €29 million in milk payments in the last year

Almost €29 million was paid out to county Longford farmers last year by Lakeland Dairies, the largest cross-border dairy processing co-operative on the island of Ireland.

The internationally renowned provider of dairy products said the €28.7 disbursed in 2024 through milk payments 'contributed significantly to the local rural economy'.

Lakeland Dairies Chairperson Niall Matthews stated the first six months of 2024 brought 'volatility' for Lakeland Dairies farm families and their co-operative, however, thankfully there was an upswing.

He said the first half of the year was extremely difficult with challenging weather conditions coupled with stubborn input prices.

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Mr Matthews stated their aim was to support their farmers who produce what he described as a 'world-class, sustainable and nutritious product with a sustainable and competitive' milk price.

“Thankfully, as weather conditions improved, so did global dairy markets and the second half of the year was better," he said.

"In total, we issued €998 million in milk payments to our farmers over the course of 2024."

Mr Matthews insisted this proves the critical importance of the dairy industry in ensuring there is a balanced regional economy with 3,200 farm families in 17 counties benefitting.

The county Cavan-based facility also processed two billion litres of high-quality milk.

Lakeland Dairies’ revenues increased to €1.75bn from €1.6bn which came as a result of an increase in value-add sales as well as an increase in general dairy market pricing particularly for butter in the second half of the year.

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Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for 2024 was €73.3m, compared to €43.4m in 2023.
Net Profit Before Tax was €21.3m which is a significant improvement on the loss of €9.75m in 2023.

Mr Matthews said despite the obstacles encountered by our farm families, Lakeland Dairies processed a record tonnage of milk solids in 2024.

"This is a testament to both the resilience of our farmers in the year and the fruits of better genetics and management at farm level.

“[The year] 2024 was also an important year as we continued to step out our ambitious and innovative strategy, 'Foundations for a Better Future' which aims to deliver sustainable prosperity to our farm families.

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"The acquisition of the De Brandt butterfat business epitomises the strategic decisions we are taking to benefit Lakeland Dairies in the short and long term," he added.

Mr Matthews said to support their farm families to be able to plan effectively for the future, they embarked on a "full-scale representation campaign with Ministers and senior politicians in our jurisdictions on issues including the Nitrates Derogation, inheritance tax, TB and generational renewal".

Lakeland Dairies Group Chief Executive Officer Colin Kelly said following a challenging 2023, where everyone in the co-op displayed remarkable resilience, 2024 was a very successful year for Lakeland Dairies with increased turnover, EBITDA and profits.

"We were also pleased to return a competitive and sustainable milk price to our 3,200 farm families.

“(The year) 2024 was one of the most strategically important years in the 130-year history of Lakeland Dairies as we continued to make strategic decisions to benefit the co-op and our farm families in the short and long term."