Cheese sales drive growth at Northern Ireland's Dale Farm

United Dairy Farmers (UDF), the leading Northern Irish dairy co-operative and owner of the Dale Farm brand, saw profits jump 25 per cent last year largely as a result of an increase in sales of its award winning cheddar cheese portfolio.

UDF grew turnover to £437 million - up nine per cent of last year. Profits rose to £5.2 million over the same period.

Chief Executive Dr David Dobbin describes the year to end of March as the company's most successful and will benefit its 1,800 farmer owners across Northern Ireland. The company had paid an average milk price of 27.26 pence a litre along with a bonus share payment.

Dr Dobbin expects further growth in the year ahead because of a "global tightening in milk supply from adverse weather conditions in the US and north west Europe".

Over the past year the company recorded £134.6 million of sales to consumers, up 16 per cent on the year with food ingredients climbing 60 per cent to £52.4 million.

It was a particularly good year for Dale Farm's. cheese "Having picked up a record 29 awards at international cheese shows in 2011, Dale Farm's Dromona cheese business saw significant growth of 61 per cent - testament to the expertise of our staff, the quality of our farmer shareholders' milk and our capital investment," Dr Dobbin adds.

"Whey protein products also proved a key area of development for the business with sales volumes up 163 per cent in the year and marking a shift from the production of milk powders as commodity markets continued to weaken."

The company, he says, will continue to invest, expanding its fresh milk and cream business and further developing its cheese portfolio. The company plans to double cheese manufacturing. Financefor the expansion will be supported by the new Bank of England Funding for Lending Scheme at attractive low rates of interest for five years.

Dale Farm aims to grow its existing business substantially in Great Britain and to strengthen its market share there.