Downturn in milk processing profits hits Glanbia
Speaking at the firm’s annual general meeting in Kilkenny, Ireland he warned that the half-year results will be hit by a reduced performance from Irish Food Ingredients, the company’s milk processing business in Ireland.
16/05/06 Glanbia expects to meet market guidance for the full year despite a downturn in its milk processing activities, chairman Michael Walsh said today.
Speaking at the firm’s annual general meeting in Kilkenny, Ireland he warned that the half-year results will be hit by a reduced performance from Irish Food Ingredients, the company’s milk processing business in Ireland.
Mr Walsh blamed the effects of lower EU supports for the dairy sector, the implementation of EU mid-term review, and higher energy costs for the slump.
“We expect the difficulties in Ireland to be offset by a good performance from our international operations and successful commissioning of our strategic joint ventures,” said Glanbia group managing director John Moloney.
“As a large consumer of energy we remain concerned about the volatility in energy markets," he added.
Dairy farmers are said to be angry that the international dairy processor cut milk prices by 6c per gallon last month, and are expected to let their views be known at today’s meeting.
Other areas of operations are performing satisfactorily, according to the company.
The phasing of results from South West Cheese in Clovis, New Mexico will be weighted towards the second half of the year. As a consequence, results from associates and joint ventures will be lower at the half year compared with last year, claims the firm.
“Overall, as trading conditions currently exist, we expect to meet market guidance for the full year and continue to make solid operational progress in the strategic development of Glanbia,” said Moloney.
