150 jobs expected to be impacted as Ireland’s biggest milk processor looks for redundancies amid rising costs

It comes amid a significant fall off in milk production on dairy farms in recent months after a period of unprecedented growth since the abolition of EU milk quotas in 2015.

In a statement issues today, it said that following a thorough review process, the programme aims to achieve cost savings throughout the business.

“In order to secure cost savings, Tirlán has made the difficult but necessary decision to offer a voluntary redundancy scheme across the organisation,” it said.

It is expected that approximately 150 roles may be impacted. The co-op employed some 2,300 people, according to its most recent annual report.

“A combination of factors requires the Co-op to proactively manage its cost base. These include rising costs in areas such as energy, interest rates, wages and environmental compliance as well as a decline in milk supply volumes.”

Today’s News in 90 seconds – 20th June 2024

It also said milk processing capabilities will remain unchanged, and Tirlán will retain the ability to increase milk processing capacity if there are changes in milk supply dynamics.

The cost savings achieved through this programme will, Tirlán said, position it strongly against future challenges and allow continued focus on product innovation and growth in value-added products.

The slump in milk production so far this year has cost the rural economy an estimated €370m. The fall has been attributed to a host of factors including poor weather, weak prices and environmental restrictions.

It comes as the CSO this month reported another fall in April milk production, down 81 million litres (-7.9pc) when compared with April 2023 and down 107.6 million litres (-10.2pc) when compared with the same month in 2022.

It means, for the period January to April 2024, the Milk Intake by co-ops and processors is now at 2,204.6 million litres, a decline of 186.3 million litres (-7.8pc). Dairy Industry Ireland (DII) has estimated that this equates to a direct loss of milk sales by dairy farmers this year of €75-85m.

However, speaking to the Farming Independent recently, DII director Conor Mulvihill warned the loss to rural Ireland is much greater, highlighting what he described as the ‘multiplier effect’ of the dairy industry in rural areas.

He said that based on EY research conducted by the industry, this year’s lost production has taken some €370m from the rural economy.

​“This money has not been taken from cities, it is coming out of rural Ireland,” he said. “We are talking about a loss the equivalent of three Páirc Uí Chaoimh in just four months, and this is on the back of an over 4pc loss in milk supply last year as well.”