Irish dairy co-operative Tirlán is undergoing a “voluntary redundancy scheme,” which will impact approximately 150 jobs across the organization. This decision is part of the company’s “cost reduction program” aimed at improving long-term competitiveness.
The company cited rising energy costs, salaries, interest rates, environmental compliance, and a decrease in milk supply volumes as factors necessitating proactive cost management. However, Tirlán assured that this move is not likely to significantly affect milk production, as it will retain the capability to expand milk processing capacity as needed.
The savings from these redundancies are expected to strengthen Tirlán against future challenges and facilitate accelerated product innovation and growth in value-added products. Chairman John Murphy acknowledged the challenges faced by both the sector and farmers, attributing the decline in performance to weather conditions, input costs, and regulatory changes in the previous year.
In 2023, the Kilmeaden cheddar processor recorded a 17% decrease in revenues to €2.53bn ($2.71bn) due to falling commodity market prices. Operating profits also saw a 5% decline to €68.3m, impacted by inflation and the organization’s commitment to supporting farmers during challenging times. Additionally, Tirlán reported a 33.7% reduction in net debt compared to the previous year, reaching its lowest level in a decade.
Tirlán, previously part of Glanbia, became an independent entity in 2022 after Glanbia sold its remaining 40% share of Glanbia Ireland to Glanbia Cooperative Society for €307m ($329.2m). The company appointed Seán Molloy as its new CEO earlier this year, succeeding Jim Bergin, who is set to retire in July. Molloy brings extensive experience from senior management roles at Glanbia’s Irish operations and is poised to lead Tirlán into its next phase of growth and innovation.
