Avonmore owner reports €3bn turnover on back of record dairy prices

Milk-processing business Tirlán, formerly Glanbia Ireland, saw its revenue jump by 36 per cent to €3 billion last year on the back of “strong ingredient sales internationally”.

The farmer-owned firm behind brands such as Avonmore, Kilmeaden, Premier and Truly Grass Fed rebranded as Tirlán last year after Glanbia Co-op acquired the remaining 40 per cent of Glanbia Ireland from Glanbia plc.

The group said it sold 423,000 tonnes of dairy products and ingredients in 100 markets, generating an operating profit of €71.9 million.

The year 2022 was a record year for dairy prices globally, driven by weaker supply from the major milk-producing regions. The high prices allowed Tirlán pay €2 billion to more than 5,000 farmers. The group also spun out about 12 million Glanbia plc shares worth €168 million to members.

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Tirlán said “record farmgate prices” saw an average of 63 cent per litre (including VAT) paid for milk. However, it warned “prices were mirrored by a sharp rise in farm input costs, with significant increases in energy, fertiliser and feed”.

The strong results have led to “a broad range of employment opportunities”, it said, noting it was recruiting 130 additional staff.

The group’s ingredients category generated €2.1 billion in revenue “capitalising on global highs in dairy markets throughout much of 2022″, while agribusiness sales achieved €644 million. The group’s consumer foods division delivered €365 million in revenue.

Speaking about the report and results, Tirlán chief executive Jim Bergin said: “We are pleased to have delivered an excellent performance in our first year where we focused on building a strong independent organisation, with best-in-class governance structures and strong financial disciplines.”

“While 2023 is proving challenging to date with a significant reduction in dairy market returns, combined with high farm input costs and supply chain inflation, we believe our co-op is well positioned to navigate these challenges and support our farmer members,” he said.

Chairman John Murphy said 2022 was a milestone year for the co-operative business, its farmer members and more than 2,300 employees as it transitioned to a 100 per cent farmer-owned business and unveiled its new identity.

“We are very pleased that in Tirlán’s first year of operation we have delivered record milk and grain prices. [The year] 2022 was a remarkable year, as we returned strong financial results whilst navigating a steady path through unprecedented volatility and sharp inflationary increases in the cost of inputs at every stage of the supply chain,” he said.

“Following our successful launch, Tirlán is firmly established, and operating as a fully farmer-owned business which gives us flexibility to continue to support our farmers while maintaining robust financial discipline,” he said.

Tirlán has 11 high-tech processing facilities, 52 agribranches and more than 2,100 employees.

The company recently began construction of a €200 million continental cheese plant at Belview, Co Kilkenny, in a joint venture with international dairy producer Royal A-ware.

Tirlán recently marked a year since the transaction was completed to acquire the remaining 40 per cent of Glanbia Ireland from Glanbia plc. It was the largest acquisition by an indigenous Irish company in 2022. The co-op launched its new identity Tirlán which translates as “land of abundance”.