Tirlán interested in forging business relationship with Tipperary Co-op
Tirlán CEO, Seán Molloy, has confirmed that the Kilkenny-based milk processor wants to forge strategic business links with Tipperary Co-op.
This assertion comes with the caveat that the ongoing discussions between Tipperary and Arrabawn must take precedence.
Molloy spoke at the 2024 Agricultural Science Association (ASA) conference in Co. Kilkenny today (Thursday, September 5).
He used his attendance at the event to comment in general terms about the benefits that could be accrued from a closer affiliation involving Tirlán and Tipperary Co-op.
Reflecting on the general developments that had taken place within Irish dairy over the past 30 years, Molloy referenced three phases of evolution.
“The Irish milk industry basically stagnated while milk quotas were in place. Market opportunities were lost and farmers were unable to invest in their businesses.
“The ending of quotas, however, led to a period of significant growth: both at processer and farmer level," Molloy said.
According to Molloy, Tirlán has invested €800 million in new processing facilities over the past decade.
“The equivalent figure at farmer level comes in at around €1 billion. The last ten years has seen the Tirlán milk pool volumes expand by some 90%. The figure comes in at over 100% from a milk solids’ perspective,” he added.
Looking to the future, Molloy sees significantly reduced scope for a further expansion in Irish milk output.
He said that the "focus ahead must be placed on adding value to the milk produced.
“But there is an even bigger challenge facing the dairy industry, one of boosting confidence at farm level.
“Many Irish farmers are very uncertain regarding the future of their businesses at the present time. This issue must be addressed as a matter of priority.”
Significantly, Molloy refuted suggestions that Tirlán’s Belview processing site might not be fully utilised in the future, given the current trends now impacting on Irish milk output.
“Our joint venture with the international milk business, Royal A-ware remains on track", he continued.
“Belview will be used to manufacture high quality, continental cheeses. In addition, Tirlán has very strong markets for the whey, which will be produced as part of this process.”
At an industry level, Molloy believes that significant scope exists for dairy processing businesses throughout Ireland to work more closely together.
“This can be achieved in a number of ways. And it is in this context that the future use of Ireland’s total milk processing capacity can be more accurately assessed," the CEO added.
