ORNUA, the owners of Kerrygold butter, say they are optimistic about the future despite 'ongoing global trade tensions'.
The news comes as the organisation, formerly the Irish Dairy Board, released its annual report for 2024, which showed turnover of €3.4bn, on a par with the previous year's figures.
CEO Conor Galvin revealed today on Morning Ireland that the organisation had frontloaded exports of Kerrygold to the US at the start of the year in anticipation of increased tariffs.
President Donald Trump subsequently announced 20 per cent tariffs on goods entering the US from the EU, although this was later suspended with a 10 per cent baseline tariff applied instead.
However, Mr Galvin believes the demand for premium Irish dairy products can help Ornua navigate these uncertain times, particularly on the back of a strong showing in the US in 2024.
"I am proud to see Ornua continue to achieve its mission of providing Irish dairy farmers with a trusted route to value, resulting in over €2bn in premium Irish dairy product purchases in the year," he said.
'Unique and sought-after'
While turnover dipped slightly by 0.2 per cent on 2023, Ornua saw earnings before interest, taxes, depreciation and amortisation rise to €165.5m, an increase of 10.4 per cent.
Meanwhile, operating profit rose by 11.8 per cent to €130.5m.
Ornua say the results reflect a strong trading performance amid volatile conditions driven by cost inflation, a pressurised milk supply and adverse weather conditions affecting processors and producers.
Kerrygold solidified its position as a leading global food brand, ending 2024 as the second most popular block butter brand in Britain and the fastest-growing brand in the category.
In the US meanwhile, it continued to experience volume sales growth, strengthening its position as the second most popular branded butter there.
Kerrygold products on offer at the New York City Wine & Food Festival in October 2024 (Image: Rob Kim / Getty Images for NYCWFF)It reached a record number of US households in the year, supported by the introduction of a new 1lb butter block, a first in the market.
"Kerrygold has strengthened its standing as Ireland's most successful food brand, with over 12m retail packs of butter and cheese sold globally each week in 2024," said Mr Galvin.
"The brand's continued growth has been greatly supported by the robust retail sales performance in the United States.
"Following a complex year, we are now entering a period of much uncertainty driven by ongoing global trade tensions.
"The exact impact of these challenges remains to be seen, however, we are confident in the strength of Irish dairy which is a unique and sought-after proposition on the world stage.
"We have premium brands and food ingredients that are enjoyed globally, thanks to the qualities of the Irish grass-based dairy farming system, the hard work of Irish producers and processors, and the unique strengths of our co-operative business model."
'Confidence'
Looking to the future, the report said that the first quarter of 2025 was relatively positive despite an uncertain outlook driven by ongoing geopolitical and trade tensions.
"As we progress through the first half of 2025, the outlook for Ornua remains positive, despite continued market uncertainties," wrote Ornua Chair Aidan O'Driscoll.
"Our entire sector, including farming families, co-operatives, and Ornua, have weathered several storms throughout our history.
"Despite the presence of challenges in the short and long term, we can take confidence in the strength of our co-operative platform and the expertise within the sector that will play a crucial role in helping us to seize opportunities."
See More: Kerrygold, Ornua, US Trade Tariffs
