Dale Farm investment for increased growth
Dale Farm has committed to a significant investment programme in cheddar cheese production at its factory in Dunmanbridge, Co Tyrone.
The monies have been spent on a combination of processes: expanding the scale of the cheddar and whey operation which is adding value to each litre of milk going through the operation.
Dale Farm Group CEO, Nick Whelan, confirms that all of this has been achieved while still paying the best possible milk prices to the co-op’s farmer members.
He said:“Scale of operation is everything when it comes to maximising the margin that can be generated from cheddar cheese and whey processing, this scale has been realised due to the increased milk volumes processed over the past two years.
“We have also invested in technical and management teams at the plant that are best in class.”
Whelan continued: “Minimising risk within the business is also important. Making this happen has been secured on the back of long term partnership arrangements with customers.”
According to the Dale Farm representative the current level of business performance being achieved across the group is proof positive to the effect that the current business plan is working.
Whelan further explained: “We have been achieving a 5% operating profit for the past number of years. This is further bolstering our ability to pay our farmer-suppliers extremely competitive prices for their milk.
“We are also working through a number of strategic partnership arrangements with Aurivo, all of which bodes well regarding the future relationships that can be developed between the two cooperatives.”
Turning to the recently initiated Nutrients Action Programme (NAP) public consultation, Whelan said that within the proposals there is a pathway to secure the required milk volumes whilst making improvements to the dairy sectors environmental sustainability.
He added: “Much of this is complex and very much dairy system specific but doable. Our aim once the outcome is finalised is to engage with our supply base and talk through the various options to mitigate the impacts of these proposals on individual farm businesses. That said joined up government action is required so as not to impede the implementation of novel phosphorous reduction solutions.”
Meanwhile, Dale Farm has reported another strong financial performance for the year ending March 2026. Turnover increased, year on year, from £722.4m to £749.3m, EBITDA (earnings before interest, tax, depreciation and amortisation) increased from £45.6m to £50.6m, operating profit grew by 4% to £39.2m and net profit before tax rose by 3.4% to £33m, while net debt reduced by £32.8m to £29.6m. This was achieved after returning more than £10m to our farmers, through paying an additional 1p per litre bonus (13th payment) on every litre supplied during the year.
During the 2025/26 year, Dale Farm paid a leading and competitive milk price to its farmers, with an average of 40.38 pence per litre. This compared favourably with average milk prices across both Northern Ireland and the Republic of Ireland.
The farmer-owned cooperative continues to demonstrate the strength and resilience of its business model, underpinned by the scale of its milk pool, which now exceeds 1 billion litres collected and processed annually. Over the past two years, the milk pool has grown by 13%, reflecting both farmer confidence and ongoing investment across the business.
Commenting on the results, Nick Whelan said the performance reflects the collective effort of farmers, employees and customers: “There is consistency and stability in our strong performance and it is a testament to the quality and resilience of our farmers, the dedication and commitment of our people, and the continued support of our customers.
“Further strengthening our leadership in dairy innovation, we have secured approval for three patents in curd technology. Demand for our functional curd products continues to grow rapidly, with increasing sales to processed cheese partners across international markets. We also continue to invest in the future of the business. Following our £70 million investment at Dunmanbridge, the next phase is now underway, including further upgrades to our new cheese processing facility. This will increase throughput and bring total cheddar capacity at Dunmanbridge to 100,000 tonnes.
“Alongside this, we are investing in talent, as well as training and development to ensure our people have the skills and capabilities needed to support continued growth and innovation across the business.
“Our focus remains on ensuring the profitability and sustainability of our farmers’ businesses. We recognise the significant cost pressures experienced at farm level, particularly as a result of global instability impacting input costs. In response to changing market conditions, payment for April and May supplies included an additional market support payment to assist our farmers at 1ppl and 2ppl respectively.”
Dale Farm Chairman, Fred Allen, added: “Our results reflect the strength of our cooperative model and the importance of working together as a team. We are proud to represent over 1,300 farming families and strive to continue to deliver a sustainable business that supports them through both opportunities and challenges.
“While the year has seen continued volatility, including rising input costs linked to global events, our focus has remained on delivering a consistent and competitive return for our farmers.
“I would like to recognise Nick, the Executive Leadership Team and all our employees across the business for their contribution to another strong year. By combining the expertise of our farmers with the skills of our workforce, and by continuing to invest in our facilities and people, we are well placed to maintain strong performance into the future.”