Ornua CEO warns of potential downward pressure on milk prices in 2023

Ornua CEO John Jordan has suggested that there could be a significant decrease in milk prices in 2023 due to a market trend that has shown weakening in the past few months. He noted that while farmers enjoyed high milk prices last year, input costs were also exceptional. Jordan added that he believes there is still room for downward pressure on milk prices this year, as they are above market returns. In addition, he mentioned that inflation has heavily impacted consumer sentiment towards purchasing dairy products in 2022, which is reflecting in the current weak market. However, Jordan believes that the Ornua operating profit dip in 2022 was a thought-through strategy to balance record high product prices to its members, while making sure that customers and consumers continue to buy Kerrygold and Ornua’s ingredient products for the longer term. Jordan emphasized that long-term success is Ornua’s priority, and maintaining loyalty with customers and consumers is crucial.