Watch: Milk price likely to face pressure to year end - Ornua
Milk price may remain "under pressure" for the rest of 2026, despite some stability forecast for markets in the second half of the year.
That's according to CEO of Ornua, Conor Galvin who was speaking to Agriland as the co-op published its financial results for 2025 today (Wednesday, April 15).
The co-op had a solid trading performance with group turnover of €3.5 billion, marginally up year-on-year.
Group EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) and operating profit grew 3.6% and 4.7% to €171.4 million and €136.6 million respectively.
Over €1.8 billion in Irish dairy products was purchased from member cooperatives, slightly down on the figure for 2024.
Conor Galvin said: "I think this year is... there is still a lot of volatility in futures in the last few weeks.
"I think earlier in the year, we would have been hopeful to see a turn in the second half; it does now look likely that turn will be slower.
"I don't price milk; so, that's a matter for the processors and the returns they can get.
"But from the market information that we have, we see reasonable stability in the market and a lift in the second half but it does still feel like milk prices are going to be under pressure for the rest of 2026."
Challenging 2025
Despite the uncertainty around tariffs in the US in 2025 and ongoing uncertainty in markets, Ornua feels positive about its performance over the past 12 months.
"It was a complex year and we're delighted to announce results which are positive - the operating profit is up," Galvin said.
"Our operating profit is up because our turnover is up. Our sales in 2025 were €3.5 billion for the first time and that has led us to drive profitability back into the business.
"We're very lucky that we have products from our farmers that are high quality and there is a uniqueness around the grass-fed Irish dairy story that allows us to bring both Kerrygold and our ingredients overseas and to command a premium."
Kerrygold
Kerrygold surpassed the $1 billion retail sales milestone in the US for the first time and reached more households globally than ever before.
Over 14,000 containers of Irish dairy products were shipped globally in 2025.
While globally, butter dropped in price significantly in the second half of 2025, Kerrygold seems to be enduring the headwinds with a loyal customer base.
"Brands like Kerrygold, which is less volatile is a way we continue to invest in the Kerrygold brand to drive value," Galvin said.
Kerrygold is considered a premium product on shelves in global markets, and should a recession occur, there are concerns that brands such as Kerrygold might be impacted.
Galvin has acknowledged that there is always a challenge around premium pricing, but that the global customer base is quite loyal to the brand.
"It's always a challenge, particularly with the affordability of the product and it's something we're really aware of," he said.
"We have very loyal consumers in a number of markets that pay a premium for our product. We have to keep giving them a value that they will pay the premium for.
"It's the experience; it's the quality; it's the consistency and it's also the innovation - so bringing new products to those consumers."
Kerrygold introduced 16 new products and product extensions globally in 2025 including a new range of butter blends, Kerrygold cheese snacking sticks, an expansion of the brand’s cream cheese range, and new flavoured butter sticks including cinnamon and sugar.
Tariffs
While the US is one of Ornua's strongest markets for dairy exports, the frequent uncertainty last year around tariffs caused consternation.
"It's a significant challenge; we've had five different tariff rates since the first of January last year," Galvin continued.
"That causes us a lot of issues. First of all in terms of our management of our customers.
"Some of the tariff rates have changed almost overnight; it's not possible to communicate and to explain to customers what's happening.
"We have to be very respectful of our customers and the certainty they need in their businesses. On top of that it just drives a level of volatility and again, uncertainty, in the Kerrygold business."
While ongoing negotiation is continuing between US and EU negotiators around trade, Ornua is hopeful of seeing more stability over the next few months.
Ornua growth
Ornua has reorganised its business into a structure that looks at "functional excellence and efficiency", according to the CEO.
Going forward it wants to see sustainable growth across markets.
"We just launched our new 'Transforming for Growth' strategy in the last couple of months," Galvin said.
"The entire supply chain has to be efficient. We have to be able to sell product that's provided to us by our members into overseas markets and give a return.
"We look to innovate. We've restructured our innovation processes to be quicker and to be more responsive to a world which has sped up," he added.
Ornua said it has now become "digital first" in how it communicates with consumers as it acknowledges that its consumers are predominantly online.
"We see enormous potential still in Irish dairy, in the Kerrygold brand and in overseas markets in driving dairy forward for the future," Galvin said.
