NDC Annual Report 2011

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The National Dairy Council Annual Report 2011

the NatioNal Dairy CouNCil

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the NatioNal Dairy CouNCil

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Contents 04

Chairman’s statement

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Chief executive’s statement

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advocacy & Communications Programme

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National Dairy Council Quality Milk awards 2011

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Marketing & Promotion Programme

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School Milk & Dairy Programme

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Milk it For all it’s Worth

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industry & Consumer relations / Nutrition Programmes

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Meet our Board

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Meet the team

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NDC reports and Financial Statements

Photo: J. Kennedy/Irish Farmers Journal.

the NatioNal Dairy CouNCil

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Chairman’s statement a year of robust growth in exports and relative stabilisation in the domestic market, 2011 was a year in which irish dairy could credibly claim to be an industry in transition. the headline figures of the year undoubtedly related to its performance overseas, with a 17 per cent surge in growth taking the total value of irish dairy exports to over €2.6 billion for the first time. Based on these figures, the targets for a doubling of dairy exports, by the end of the decade, as set out by the Department of agriculture, Food and the Marine in Food Harvest 2020, would seem to be well on their way to being met. that said, issues such as unforeseen weather and market events, currency fluctuations and price volatility all serve to make consistency in year-on-year projections a difficult task.

Within the domestic market, where the activities of the NDC are focused, the story of 2011 is also positive. While there has been no significant growth in the overall market, dairy consumption has remained resilient in terms of volumes and spend. the NDC's 'Farmed in the republic of ireland' trade mark, which is now a ubiquitous presence in the retail environment – appearing on over 700 products – has played a hugely important role in informing consumer choice in purchases and decision-making. as the industry progresses towards the abolition of quotas in 2015, we are entering what can genuinely be seen as new territory for producers. While the drive for growth will the NatioNal Dairy CouNCil

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be focused on overseas markets, the importance of vibrant domestic consumption, and a well-informed consumer-base, cannot be overstated. as both a dairy farmer, and someone who has represented dairy farmers at a national level over the years, i feel privileged to serve as Chairman of the NDC at this significant time in our industry. through the milk levy, farmers are key funders of the organisation and i am conscious that the ongoing support and buy-in of the farming community is critical to a strong and vibrant NDC. reflecting this level of confidence, we were delighted to welcome two new members – lisavaird Co-op and Drinagh Co-op – to the NDC in 2011. through initiatives such as the NDC Quality Milk awards and our high-profile presence at the National Ploughing Championships, among other events, a closer relationship with, and a better understanding of the role of, the NDC has been fostered among farmers over the last number of years. throughout our industry, there is widespread recognition of its world-class credentials in raising the profile and perception of irish dairy products. Farmers recognised the importance of the ‘Farmed in the republic of ireland’ trade mark from its inception; the fact that it is now one of the most trusted country-of-origin trade marks among irish consumers is a matter of some satisfaction. at the end of 2011, the launch of the promotional campaign Obey Your Body represented a further bold step forward in the promotion of milk in ireland. the progression of this campaign will be one of the keynote activities of the NDC in 2012. the Board of the NDC has always played an important role in its success, both as a forum to agree strategy and as a support in the execution of plans. Since taking up the

position of Chairman in September 2011, i have been struck by the passion and commitment of the Board members and their willingness to share expertise across a variety of areas. i would like to pay tribute to the contribution of former Chairman Dominic Cronin, who played a key role in the revitalisation and redevelopment of the NDC. i would like to welcome Stephen Shorten to the role of Vice Chairman and extend every good wish to former Vice Chairman henry Corbally who served the Board with distinction over the last number of years. i would also like to welcome John Murphy who joined the NDC Board in 2011. i have also been impressed by the unstinting commitment of Chief executive Zoë Kavanagh and the staff of the NDC. the ongoing success of the NDC in turning complex strategy into concrete action can be attributed to the skills and resourcefulness of Zoë and her results-focused team. the irish dairy industry is embedded socially and environmentally in the fabric of ireland in a way that few other industries can match. as we plan for the year ahead, the NDC will continue to deliver on our commitments and offer the level of excellence our stakeholders have come to expect. in what remain difficult times for the broader economy, the values at the heart of our organisation can be seen to be in tune with the values of our industry and our overall ambitions for recovery, confidence and growth. it is for these reasons that i believe we can look to the future with confidence.

Jackie Cahill Chairman the National Dairy Council

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Chief Executive’s statement access to natural, nutritious food is the right of every consumer and no sector is more committed to delivering on this than the irish dairy industry. in the past, it has been all too easy, for some, to take for granted the fact that irish dairy farmers provide one of nature’s most important foods, in one of the most natural environments in the world. over the last number of years, the National Dairy Council (NDC) has been to the fore in changing perceptions, so that this world-class industry is respected as the great natural resource it is. indeed, all NDC activities can be seen as centring on two interconnected goals: developing recognition of the value of dairy in a balanced, healthy diet; and highlighting the irish dairy industry as a trusted resource for consumers. through the sustained momentum of our marketing and advocacy programmes, we have made great progress on both fronts in the last number of years and the relevance of dairy to a healthy, balanced diet is arguably better understood by irish consumers than at any time in the recent past. Critically, through initiatives such as the ‘Farmed in the republic of ireland’ trade mark, the NDC has served as a unique interface between these two key stakeholders – consumers and farmers – allowing the irish public to make informed choices in their milk and dairy purchases. as a business model, the irish dairy industry is unique – its foundations are a community of farmers, processors and professionals who, in their combined activities, deliver

excellence in an often challenging and highly-competitive environment. With production in the hands of irish farm families, and the co-operative structure embedded in the communities they serve, the income and employment dairy generates stays firmly within ireland and is spread evenly across the country.

DELIVERING VALUE over the last few years, the NDC has enjoyed renewal in its national profile, and its credibility among consumers, as confirmed by independent research, is at an all-time high, won through commitment, integrity and excellence in our undertakings. as difficulties in our domestic economy persist, irish consumers have, rightly, made fresh demands for value and accountability in their food purchases. Similarly, the farmers who support us, through the milk levy, rightly demand value for money and accountability for their contribution. under my predecessor, helen Brophy, the NDC underwent significant revitalisation, with robust programmes of advocacy, communications and issues management put in place under the five-year (2008-2012) Dairy: Food for Life strategy. the NDC is today, indisputably, an organisation fit for purpose to meet the challenges of the current economic environment and, i believe, any analysis of its work can only affirm the exceptional value for money it provides to stakeholders.

INITIATIVES a key focus of Dairy: Food for Life is engagement with the consumer and, as the strategy enters its final year, i am

happy to report that we continue to build our capacity and momentum in this regard. ensuring our voice is heard in a crowded marketplace is our ongoing objective. through the 2011 Annual Report, i hope to give a sense of the decisions made and successes achieved across our six programmes of delivery: • advocacy & Communications Programme • Marketing & Promotion Programme • School Milk & Dairy Programme • Milk it For all it’s Worth • industry & Consumer relations / Nutrition Programmes • accountability & Corporate Governance

GLOBAL AND LOCAL While the focus of the NDC is on the domestic market, the irish dairy industry is a global one and actions that impact on our public profile in ireland also have relevance in the international context.

Figures from the Central Statistics office show that, in 2011, domestic intake by creameries and pasteurisers was 5.376 billion litres, up 3.9% on the previous year’s figure. ireland exports well over 80% of all its dairy output and the industry enjoyed a particularly buoyant 2011, with exports rising in value by an estimated 17% to 2.66 billion. irish dairy farmers feel a growing and justified sense of optimism on the strength of this and, as we move closer to the abolition of dairy quotas in 2015, conversation in our industry is increasingly centring on the opportunity to upscale production. undoubtedly, ireland will win growing market share on the strength of the basis of excellence and, in this context, it is important to recognise that the the NatioNal Dairy CouNCil

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domestic market is the key reference point in terms of the quality of our offering and the confidence it enjoys among consumers. the NDC looks forward to the important role it will play in this context in the years ahead.

ADVOCACY & COMMUNICATIONS PROGRAMME the NDC’s position as a trusted and respected voice for the irish dairy sector is energetically pursued and defended through our advocacy & Communications Programme.

Science-based information on the health and nutritional benefits of milk and dairy products is at the core of all we communicate, a position reflected by the central role of the NDC Nutrition team in underwriting our communications activities. as a small organisation, the NDC has, over the years, demonstrated considerable strategic innovation, building alliances with like-minded organisations in the uK and europe and engaging with key opinion leaders in areas such as food science and sports nutrition. this has allowed us to target important communities and demographics as we build the credibility of our communications. the NDC’s health & Wellbeing programme is central to our communications strategy and 2011 saw highly successful events held in tralee, Donegal town and inchydoney, West Cork (see page 10). these events shared a common theme and sense of purpose, as expert speakers addressed the continuum that is physical and mental wellbeing and brought alive all the fun and satisfaction of cooking with milk, cheese, butter and cream through interactive cooking demonstrations. as ever, we are grateful for the support of the participating co-ops, our excellent line-up of speakers, the local media and, most importantly, the public who have embraced the concept so warmly.

DN Forum and SN Forum are specialist publications for the NatioNal Dairy CouNCil

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health and sports professionals respectively and both enjoyed successful runs in 2011. While targeting different audiences, they share the goal of imparting accurate, evidence-based information about dairy and provide important reference points for debate among key opinion leaders in health and nutrition.

Meanwhile, the continued success of the NDC Quality Milk awards, which sets out to identify and reward our top dairy farmers, and our participation at events such as the National Ploughing Championships have strengthened our direct links with the farming community and enhanced awareness of the NDC as a result. the NDC dome at the National Ploughing Championships in athy, Co. Kildare, in September 2011 proved an immense hit with the public while the NDC’s Quality Milk awards enjoyed its most successful year ever, showcasing the exceptional quality of irish dairy farming. eighteen dairy farms, representing 13 counties, were nominated for what is now seen as one of the foremost awards in irish dairying. Congratulations to overall winners, father and son Michael and thomas enright from Ballynorth, askeaton, Co. limerick, who are Kerry agribusiness suppliers and to all the worthy winners across the categories. (See page 12).

MARKETING & PROMOTION PROGRAMME With the launch of the ‘Farmed in the republic of ireland’ trade mark and its accompanying promotional campaign in late 2009, the NDC confirmed its ambitions to be an influencer at the highest level. the high-impact campaign was seen to have an immediate effect on decision-making among consumers and, critically, received widespread support from industry players at retail and foodservice level. the NDC trade mark is now displayed under licence on packaging for some 740 milk and cream products, ranging from brand leaders to private label. a new animated carton of milk was a notable addition to the NDC’s advertising armoury in early 2011 and three executions ran in rotation across national and satellite television stations. as part of an overall strategic review of the Marketing & Promotion Programme, in mid-2011, the NDC recognised the need for a ‘next step’ to maximise and broaden the impact of the trade mark among consumers. research

indicated that the single biggest purchase drivers for milk are ‘pride’ and ‘best for family’ and a new campaign was developed to specifically engage with the latter, highlighting, for children and teenagers, the nutritional value of milk and a broad range of consumption occasions. the Obey Your Body campaign, launched in December 2011, was the culmination of an extensive consultation and development process. at the heart of the campaign are three new tV advertisements, which run in parallel with a new consumer-engagement website – www.obeyyourbody.ie – and for which 12 new NDC sports ambassadors have been recruited. the advertising campaign revolves around an irish family who ‘obey their bodies’ by selecting ‘Farmed in the republic of ireland’ milk in domestic, shopping and recreational scenarios. through the use of innovative green-screen technology and puppeteering, the executions bring fresh energy to milk advertising, taking it directly into a space traditionally associated with highly-engaging categories. the NDC has also been running successful butter and cheese promotions since 2010 and these campaigns continued in 2011. the renewed butter campaign commenced in June while the cheese campaign was supported by the year-round ‘fully wrapped’ buses in Cork and Dublin and a print campaign in September.

MILK IT FOR ALL IT’S WORTH Milk it For all it’s Worth launched in March 2010 and, over three years, is designed to build the association between milk, dairy and sport among 11-to-20 year olds. unique among NDC programmes for its international dimension, this co-operative project links the NDC (as lead partner) with the dairy councils of Northern ireland and Great Britain. educational elements of the campaign in 2011 included an interactive workshop to provide coaches of young rugby players with up-to-date sports nutritional information, which was hosted in Dublin’s aviva Stadium in June and organised jointly by the irFu and NDC. the www.milkit.ie website, along with digital online advertising on MSN, youtube and Facebook, reflects the youth demographics being targeted by the programme and, in mid-2011, the NDC engaged with the relationship

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marketing agency Cawley Nea\tBWa to further develop and enhance this online focus.

SCHOOL MILK & DAIRY PROGRAMME the School Milk & Dairy Programme has traditionally been offered to primary school pupils in the republic of ireland.

Since 2010, the School Milk Programme has been extended to secondary schools and has been further supported by the Milk it awards, which give students the opportunity to gain insight into the world of advertising by developing a campaign to encourage their peers to meet their recommended calcium intake. in June 2011, meanwhile, a survey of irish primary schools was undertaken to gain a clearer understanding of participation drivers. an extremely high response rate indicated interest among both participating and non-participating schools and the findings confirmed that delivery is the single most important element in deciding participation, with availability of refrigeration the second main issue. among non-participating schools, 72% expressed an interest in a loyalty programme as an incentive to join and this was subsequently launched at the end of august/early September. the NDC Milk it Secondary School advertising awards 2012 follow the success of the inaugural awards programme. encouraging secondary school students to set up their own ‘advertising agency’, the programme received extremely positive feedback in its inaugural year, with schools indicating it helped student to develop useful business skills as well as build personal confidence and responsibility.

INDUSTRY & CONSUMER RELATIONS / NUTRITION PROGRAMMES the value of milk and dairy products in the republic of ireland, as part of a balanced diet, is fundamentally recognised by Government and international dietary guidelines. the proposal, therefore, by the Broadcasting authority of ireland to restrict the advertising of cheese to children under the age of 18 must be seen as counterproductive and, in this regard, came under the media spotlight on several occasions in 2011. the miscategorisation of cheese as ‘less healthy’ by the Bai would have a number of damaging repercussions, causing

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significant confusion amongst consumers at home and sending a negative message to emerging markets, where interest in dairy products is growing strongly and where new markets for irish dairy exports, in line with the projections of Food Harvest 2020, are expected. throughout 2011, the NDC has advocated strongly for the exemption of cheese from the nutrient profiling model, based on upto-date scientific research, and will continue to monitor developments closely in 2012. the growing role of social media in informing consumers on nutrition became increasingly evident in 2011 and our goal, in 2012, is to build capability in this area.

ACCOUNTABILITY & CORPORATE GOVERNANCE the NDC undertakes all its activities with the needs of irish consumers and of irish farmers to the fore, and with the professionalism our stakeholders have come to expect. in 2011, we were delighted to welcome Jackie Cahill as Chairman of the Board of the NDC. a long-standing board member, Mr Cahill brings extensive experience at the heart of farm politics and has been a passionate and tireless advocate on behalf of dairy farm families through his career. We were also delighted to welcome Board member Stephen Shorten to the position of Vice Chairman and John Murphy to the Board. on the occasion of his departure from the Board, i would like to extend my sincere thanks to to former Vice Chairman henry Corbally for his unstinting service in the same aim. i would also like to thank former Chairman Dominic Cronin for his ongoing contribution to advancing the goals of the NDC. it goes without saying that the support of our dairy co-op members is pivotal to what we do and, in 2011, we were delighted to welcome two new co-operatives, lisavaird and Drinagh, as members.

CONCLUSION Milk and dairy products are a staple in virtually every household in ireland and the milk, cheese and yoghurt food group forms a unique category in the food pyramid. as opportunities emerge in the global context, they provide an opportunity for sustainable job and wealth creation across our country in the years ahead.

Outgoing Vice Chair, Henry Corbally, and outgoing Chair, Dominic Cronin, at launch of the ‘nDC Annual review 2010’ in March 2011.

the Annual Report 2011 provides an opportunity to reflect on the challenges and opportunities which the NDC has engaged with, on behalf of industry, over the course of 2011. in highlighting our achievements, i hope to also provide a clear sense of the momentum that drives us forward in 2012. having taken on the role of Ceo in 2011, i am sincerely grateful for the warm welcome i have received within the organisation and the industry, and my great thanks must go to the NDC Board, and to the talented and dedicated team i work with, for assisting me in making a quick and successful transition. there are exciting times ahead as we communicate the benefits of milk and dairy products to consumers in a way that is relevant and reflective of their needs, and that supports the long-term growth of our industry and our economy.

Zoë Kavanagh Chief executive the National Dairy Council the NatioNal Dairy CouNCil

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Advocacy & Communications Programme advocacy takes many forms but has the common goal of speaking on behalf of communities. the NDC’s distinct role is to advocate on behalf of irish dairy farming and, by putting science-based information at the heart of what we do, we have earned a level of credibility among consumers that is delivering long-term benefits to the industry. the NDC speaks on behalf of the dairy industry through a diverse but highly structured communications programme that highlights the health and nutritional benefits of milk and dairy through many layers of irish society – including the education, healthcare, sports and wellness spheres as well as, more broadly, mothers of young children, the farming community and, of course, the general public. underwriting all our outputs is the work of the NDC Nutrition team, as well as the resources at our disposal through alliances with key organisations both nationally and internationally.

TARGETING PROFESSIONALS Dairy Nutrition Forum (DN Forum) and Sports Nutrition Forum (SN Forum) are the NDC’s flagship publications for healthcare and sports health professionals, and both publications proved highly successful in 2011. the first edition of DN Forum in 2011 addressed common misconceptions around important health and nutritional issues, and offered accurate sciencebased information by way of clarification, while follow-up issues addressed topics such as the calcium content of milk, cheese and yoghurt and its bioavailability in relation to other foodstuffs, and the relationship between saturated fat and cardiovascular disease risk – a topic often misunderstood in relation to the milk and dairy food group – and clarified in DN Forum with studies which indicate either no associations or, indeed, a beneficial role. the NatioNal Dairy CouNCil

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At the NDC’s Annual Conference in June 2011 were: (left to right) Simon Coveney TD, Minister for Agriculture, Food and the Marine; Zoë Kavanagh CEO, NDC; and Ireland and Munster rugby player, Paul O’Connell.

(Photo: C. Mahady/Fennell Photography).

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The National Dairy Council Health & Wellbeing evenings, run in conjunction with member co-ops and processors, are informative and fun with an emphasis on audience participation and showcasing local produce and businesses. (Images Š McGarrigle Photography/NDC/J. Troy). the NatioNal Dairy CouNCil

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Meanwhile, the first edition of SN Forum was published in 2011, with a total of nine issues planned for the period 2011-2013. SN Forum features advice from experts in nutrition and sporting environments, athlete case studies and reviews of scientific studies that demonstrate the potential role of dairy in sports nutrition. topics covered in 2011 included a diet plan for a young rugby player, an interview with NDC ambassador Derval o’rourke and regular expert contributions that focused on putting the science of sports nutrition into practice.

HEALTH & WELLBEING EVENINGS the NDC’s health & Wellbeing Programme enjoys huge popularity and support throughout ireland and, in 2011, three highly successful events were held in inchydoney, West Cork, Donegal town and tralee, Co. Kerry.

CORK

West Cork was the venue for the first health & Wellbeing evening of 2011, hosted by the NDC in association with Carbery, Clóna Dairy Products and West Cork Co-ops: Bandon, Barryroe, Drinagh and lisavaird. a capacity crowd gathered at inchydoney lodge & Spa in april to see a presentation on ‘Dairy throughout the life Stages’ by leading independent dietician Paula Mee. they also heard advice on mental wellbeing from counsellor and wellbeing coach Fiona hoban and witnessed a cook-off between richy Virahsawmy from richy’s Bar & Bistro, Clonakilty, and James Grimes from Prestige Catering, Cork. rtÉ Six-one News anchor Sharon Ní Bheoláin was master of ceremonies.

‘Daily dietary guidelines are set at levels to help irish people achieve the recommended intake of essential nutrients which our bodies need. Some very simple steps could make very big differences to your health and wellbeing, both short- and long-term,’ Paula Mee told the NatioNal Dairy CouNCil

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attendees.

Paula referred to national surveys that show nearly two thirds of irish adults consume less than the three servings of dairy a day recommended by the Department of health. the Co. Cork based CoPe Foundation, which supports children and adults with intellectual disabilities, received the proceeds from the raffle ticket sales and entry fees on the night.

DONEGAL

Donegal’s health & Wellbeing evening was hosted by the NDC and Donegal Creameries in May at the Mill Park hotel, and included a fashion show, courtesy of Mcelhinney’s Department Store.

Counsellor and wellbeing coach Fiona hoban provided a thought-provoking presentation about ‘mindfulness’ and its impact on our wellbeing. Ms hoban described mindfulness as ‘awareness and acceptance of what is happening now, allowing us to respond to, rather than react to, circumstances’. Dietician Paula Mee addressed some key misconceptions about milk and dairy in her presentation, pointing out that milk and dairy should be part of a balanced diet, even for people trying to control or lose weight. ‘it is a common myth that dairy products are high in fat,’ says Paula Mee. ‘the truth is that whole milk is typically standardised at 3.5% fat in ireland, between 1.5-1.8% for semi skimmed, while 1% milk and skimmed milks are also available. additionally, there are a wide variety of reduced fat options for dairy products.’ all proceeds from a raffle on the evening were donated to North West rehab.

KERRY

Ballyroe heights hotel, tralee, was the location for the final health & Wellbeing event of 2011, which was organised by the NDC in conjunction with lee Strand Milk. Presentations

by Paula Mee and Fiona hoban were followed by a culinary demonstration by creative chef Mark Doe from Just Cooking Cookery School, Firies. Deirdre Walsh from radio Kerry was master of ceremonies and proceeds from the event were donated to Kerry Cancer Support Group. addressing the value of milk in sports nutrition at this event, Paula pointed to research showing that milk and milk-based products can have a role in sports nutrition. ‘in general, the natural nutritional content of milk – carbohydrate, protein, including both casein and whey, and electrolytes – potentially makes it a good sports drink,’ said Paula Mee. attendees of all three health & Wellbeing events were reminded that the NDC nutritional team has produced a number of free fact sheets, including ‘understanding osteoporosis’, ‘a Guide to healthy eating’ and ‘a Guide to Weight loss’, which can be accessed from the publications section of www.ndc.ie

BUILDING PROFILE Participation at events such as the National Ploughing Championships, which were held in athy, Co. Kildare, has strengthened the NDC’s direct communication links with the farming community and, in 2011, relationships continued to grow and develop. the distinctive NDC Dome was once again an immense hit with the public, as were innovations such as a basketball court and the return of the NDC-branded interactive photo booth. Champion athlete, Derval o’rourke, was on hand on the opening day to meet members of the public. the Food & agriculture organisation has designated 1 June as annual World Milk Day, creating a global platform to ‘celebrate’ milk. the NDC took the opportunity to highlight the very important message of milk as a source of valuable nutrients, not just among children and teenagers, but also adults.

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Pictured at the National Ploughing Championships, in Athy, Co. Kildare, in September 2011 were: (left to right) Minister for Agriculture, Food and the Marine, Simon Coveney TD; Aidan Holdan and Matthew Hall from UL Eagles Basketball; and Zoë Kavanagh, CEO, NDC. (Photo: D. Vaughan).

Pictured outside the distinctive NDC ‘Dome’ exhibition stand at the National Ploughing Championships 2011 in Athy, Co. Kildare, were: (left to right) NDC Vice Chairman, Stephen Shorten; Chairman, Jackie Cahill; and Zoë Kavanagh, CEO, NDC. (Photo: D. Vaughan).

Champion athlete and NDC sports ambassador Derval O’Rourke pictured with one of the many young visitors to the NDC stand at the National Ploughing Championships 2011.

(Photo: D. Vaughan). the NatioNal Dairy CouNCil

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NDC Quality Milk Awards 2011 a common thread in all NDC activities is the determination to champion irish dairy farming in a way that highlights its distinctive and enduring values. Since its inception in 2009, the National Dairy Council Quality Milk awards has allowed the NDC to communicate this message to one of our most important audiences – dairy farmers themselves. the Quality Milk awards set out to identify and to reward top dairy farmers in the republic of ireland and the level of interest generated has seen them earn the moniker the ‘Sam Maguire’ of irish dairy farming. the awards serve a number of purposes, notably to build a sense of continuity between the promotional work of the NDC and the every day excellence of irish dairy farmers and, in this way, to

showcase the quality of irish dairying to consumers. additionally, the awards provide a platform for NDC co-op members to highlight the technical requirements, standards and techniques of top quality milk production to their suppliers. the overall winners of the 2011 National Dairy Council Quality Milk awards were dairy farmers Michael and thomas enright from Ballynorth, askeaton, Co. limerick. this father and son team are suppliers of milk to Kerry agribusiness and were presented with the NDC perpetual cup and a €5,000 prize by special guest Mícheál Ó Muircheartaigh at the ceremony. the judges also named the enrights as the top Manufacturing Milk Suppliers in the national competition. National runners-up and winners of the

Pictured with dairy cow Rudolph Darlene at the RDS, Dublin, were (left to right): Loretta Enright; Zoë Kavanagh, CEO, NDC; Michael Enright and Thomas Enright, overall winners of the National Dairy Council Quality Milk Awards 2011.

(Photo: C. Mahady/ Fennell Photography). the NatioNal Dairy CouNCil

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Profile

Vanessa o’Connor Winner – Judges’ Award for Milk Quality In a Herd under 50 Cows Based in russell Hill, upton, Co. Cork, Vanessa o’Connor farms 43 acres of land, plus an additional 17 acres rented from a neighbour, with her husband David and supplies Bandon Co-op. Vanessa and David took over the o’Connor family farm in 2002 and, over the last decade, have focused on steadily improving the herd. With a young family, Vanessa says the support of her husband, who works full time in Cork airport, is invaluable.

‘His working hours are irregular and we try to work around his rota. If he is off on a morning and I have to get kids to school, I’ll start off milking and he’ll finish it off.’ Successful dairying starts from discipline and routine, Vanessa believes, adding that the input of her co-op and other farmers, through discussion groups, is very important to her. She believes that, while there is still a lot to be done in terms of changing public perceptions of farmers and farming, the work of the nDC has been impressive. thanks to the ‘Farmed in the republic of Ireland’ trade mark there is a growing awareness of the quality of what we are producing.’

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13 top liquid Milk Supplier Category award were Michael and Gerard Gowing, Kilminchy, Portlaoise, Co. laois, who supply milk to Glanbia. other farmers recognised for excellence in the 2011 NDC Quality Milk awards were: • tommy and emma Culloty, tralee, Co. Kerry (suppliers to lee Strand Co-op) – Judges’ award for excellence in Fresh Milk; • Michael and una Cully, Carrowreagh, tubbercurry, Co. Sligo (suppliers to Connacht Gold Co-op) – Judges’ award for Diligence; • Daragh and Claire Kennedy, Kippagh, Dunmanway, Co. Cork (suppliers to lisavaird Co-op) – Judges’ award for low SCC; • Charles and Davina McCandless, lisnacara, Culduff, Co. Donegal (suppliers to Donegal Creameries) – Judges’ award for Sustainable use of existing Facilities; • Donal and anne McCarthy from Bishopland, Drimoleague, Co. Cork (suppliers to Drinagh Co-op) – Judges’ award for Sustainable Breeding Strategy;

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Vanessa and David o’Connor from russell hill, upton, Co. Cork (suppliers to Bandon Co-op) – Judges’ award for Milk Quality in a herd under 50 Cows; • John, Joan and P.J. o’Keeffe, Court-na-Boola, Callan, Co. Kilkenny (suppliers to Callan Co-op) – Judges’ award for Sustainable Development; • Norman and Colette tuthill, Brookfield, Burleigh, Bandon, Co. Cork (suppliers to Barryroe Co-op) – Judges’ award for year round Protein excellence; and, • Paschal and irene Walsh from ardbash house, edenderry, Co. offaly (suppliers to Glanbia/ Virginia) – Judges’ award for Facilities.

Speaking at the awards ceremony, NDC Chief executive Zoë Kavanagh noted that the awards confirmed not only the extremely high standards of food quality and food safety assurance that irish consumers enjoy, but the new excitement which is entering the industry. ‘as we identify excellence in dairy farming, we are also providing role models for the many young farmers who are recognising that irish agribusiness now looks set to make a very important contribution to our economic recovery,’ she said.

(Left to right) Zoë Kavanagh, CEO, NDC; broadcaster Mícheál Ó Muircheartaigh; and Michael, Kitty and Gerard Gowing, National Runners Up and Winner Top Liquid Milk Supplier Category Award, NDC Quality Milk Awards 2011.

(Photo: C. Mahady/Fennell Photography).

Profile

Michael, Kitty and Gerard Gowing national runners up and Winner top liquid Milk Supplier Category Award the Gowings have been farming in Kilminchy, portlaoise, Co. laois, since the 1700s and, today, the family farm of 250 acres supports a dairy herd of 100 cows. Father and son Michael and Gerard have been working on the farm as partners for the last four years and the Gowings’ commitment to quality has seen them win a number of performance awards with Glanbia over the years. It was this that led to them being invited to participate in the Quality Milk Awards, which Michael describes as the 'cream of dairy farming awards'. the farm has a busy day-to-day schedule, however, and Michael explains that it was the enthusiasm of his wife Kitty and son Gerard that persuaded him to allow the farm to go forward. Herd health management is an issue that has to be managed 24/7, he says.

Winning an nDC quality milk award is a high honour, Michael says, and a timely encouragement as the Gowings look forward to expanding production in the future. 'to be recognised for the work you have done over the years makes you feel proud and encourages you to continue to improve. life is a learning curve and one of the pleasures of farming is being able to apply tomorrow what you learn today.’ the NatioNal Dairy CouNCil

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Marketing & Promotion Programme Since initiating the Dairy: Food for Life programme in 2008, the NDC’s commitment to world-class marketing and promotional activity has allowed it to effectively reach out to diverse audiences and to develop messaging of substance that has had both immediate impact and built long-term relationships of trust with consumers.

TRADE MARK With the launch of the ‘Farmed in the republic of ireland’ trade mark in 2009, promotional activity around it has become virtually synonymous with the NDC’s public profile and independent research has confirmed the decisive impact that the marketing campaign has had on consumer purchasing decisions in both retail and foodservice environments. having established high levels of credibility with both industry and consumers in a remarkably quick period of time, the ‘Farmed in the republic of ireland’ trade mark features, to date, on over 740 irish milk and cream products and has proved equally successful in both the branded and private label channels. independent market research on the effectiveness of the promotional campaign has been ongoing, with each successive phase confirming earlier evidence that the NDC had exceeded expectations (and industry norms) in terms of impacting on and influencing irish consumers. the NatioNal Dairy CouNCil

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recognising that promotional activity requires continual updating to prevent ‘consumer fatigue’ the provenance aspect of the trade mark campaign was further reinforced in 2011, with the introduction of three new animation-based ads. With a humorous take on the ‘freshness’ of irish milk, the executions enjoyed positive consumer reactions, and ran on both national and satellite television stations between January and September.

Nationally, the trade mark promotional campaign was not just a media event, but also capitalised on pointof-sale opportunities. in July, 2,700 points of purchase were activated across the country in a campaign that was repeated during the back-to-school period of end of august/early September. Supporting the awareness of the trade mark generated by the media campaign, the point-ofsale material provided visibility at decision-making time, and strengthened consumer awareness of the messaging around provenance. the considerable consumer media coverage generated for the NDC Quality Milk awards presented a further opportunity to strengthen this sense of the provenance as it allowed consumers to ‘put a face’ to their milk producers and gain a sense of the trade mark representing real irish dairy farmers and their families.

OBEY YOUR BODY over the summer period, the NDC undertook a comprehensive review of the promotional campaign, with a view to planning its future direction and renewing its

strategic objectives. out of this process, consensus emerged that, while much had been achieved in the launch phase, the next stage of activity would require a significant step forward if it was to continue to deliver the required impact. the objectives of the new campaign were four-fold: (1) strengthening the ‘best for family’ message that research has consistently indicated as one of the two main drivers of dairy purchasing activity among shoppers in the key 25-55 female demographic (the second driver ‘pride’ had been the focus of the initial launch campaign); (2) continue to revitalise perceptions of milk, particularly among younger age groups, and do so through a campaign that had relevance in online media; (3) continue to foreground the nutritional value of milk and dairy, and stress their versatility in a range of consumption occasions; and (4) continue to build awareness of, and engagement with, the trade mark among the general public, recognising that there remained a significant proportion of the population yet to be ‘reached’ in terms of both the trade mark and the NDC’s overall messaging around the consumption of irish milk, cheese and butter.

With the launch of the Obey Your Body campaign in December 2011, the NDC sought to fulfill these objectives with an entirely new campaign that has distinctive but complimentary tV and online aspects. Most visibly, the Obey Your Body campaign centres on a cluster of three tV advertisements – two 30-second executions and one 10-second execution – featuring slices of life of a typical irish family, who ‘obey their bodies’ by choosing ‘Farmed in the republic of ireland’ milk. the tV ads are notable for their conceptual innovation, as puppeteers worked with actors, using green-screen technology, to deliver the high-energy movements that

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through the website, as well as accessible on youtube over the 2012-2013 period.

While the tV element of the campaign is primarily milkled, the online activity provides equal coverage to butter, milk and cheese, and stresses the role of dairy as part of a balanced diet and healthy lifestyle.

FEEDBACK

obey Your Body sports ambassadors including Aislinn Connolly (camogie, Galway); Eoin Cadogan (football/hurling, Cork); Karl Lacey (football, Donegal) and Pádraic Maher (hurling, Tipperary) receive tips from their coach for the day while filming video clips for the obey Your Body website.

(Photo: I. McColl/Kick Communications).

bring the core message to life.

By identifying consumption opportunities in a variety of contexts, the campaign takes milk advertising directly into a space traditionally associated with highly engaging categories.

ONLINE FOCUS our Facebook presence and the obeyyourbody.ie website are the centrepieces of the online campaign and – with additional support offered by a range of other online promotional activities – interactivity has been key to its appeal. twelve NDC sports ambassadors were recruited in advance of the launch, among them Deirdre ryan, David Wallace and Padraig Maher, and, in November 2011, they were filmed at Carton house, Maynooth, carrying out various tasks and sporting activities, as well as at rosedale house, Shankhill, participating in a cookery demonstration. With the highlights of both days edited into short videos, a number were uploaded on the website on its launch and, with the youtube audience firmly in mind, the ultimate goal is to have some 50 separate videos available

With the campaign launching in December 2011, the first independent assessment of its effectiveness, confirmed a very strong performance for the tV advertising. it found that some 80% of housewives with children had seen the ads at least once and some 50% of housewives with children had seen the ads at least four times. the online performance was equally encouraging: use of high impact pre-roll advertising, which features in advance of programmes viewed on rtÉ and tV3 online players, as well as ‘takeover’ ads where the Obey Your Body message appears centre screen for msn.ie users, proved highly effective.

During the two-week launch period, a total of 8,738 visitors arrived to the Obey Your Body website from the various display campaigns, with 50% of those from MSN or rtÉ.

Considerable resources have also been dedicated to ensuring that the Obey Your Body campaign engages with stakeholders beyond these channels. in 2012, the programme fully rolls out, with health and wellbeing events, sports seminars, schools activity and cheese and butter print executions specific to Obey Your Body all significant elements of the campaign.

also supported by year-round ‘fully wrapped’ buses in Cork and Dublin, while a print campaign in September revitalised the message on a national basis. in october, the NDC sponsored the launch of the ‘Butter Bricks’ exhibition at the Cork Butter Museum in Shandon, Cork City. the installation, created by long-time butter label collector Mike Carey, Ballysimon, Co. limerick and Cork artist, Maud Cotter, included copies of butter labels, dating from the 1940s to the 1970s, from across the country.

Meanwhile, extra colour and humour was brought to the NDC’s highly popular stand at the National Ploughing Championships in September through the presence our Cheesy Moments photo booth and the presence of the ‘Butter Queen’, who distributed individual packs of irish butter shortbread biscuits.

BUTTER AND CHEESE PROMOTIONS Since 2010, the NDC has successfully broadened its promotional remit to include butter and cheese promotions and the two campaigns ran in broadly similar formats in 2011. the renewed butter campaign commenced in June with a promotion on rtÉ radio 1’s Mooney Show, which centred on a competition to celebrate Father’s Day. to celebrate irish cheddar cheese, the NDC invited the public to share their favourite Cheesy Moment or Cheesy Smile photos to win a range of prizes. the Cheesy Moments campaign was

Pictured at the launch of ‘Butter Bricks’ at the Cork Butter Museum were (left to right): Simon Coveney TD, Minister for Agriculture, Food and the Marine; Peter Foynes, Director of the Cork Butter Museum; and NDC Vice Chairman, Stephen Shorten. (Photo: D. McSweeney). the NatioNal Dairy CouNCil

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School Milk & Dairy Programme the School Milk & Dairy Programme has long been established as the most cost-effective way for parents to provide their children with fresh milk while in education. registered schools avail of the eu-subsidised milk in a variety of packaging and delivery options from individual co-ops, with the NDC playing an overseeing marketing and advisory

role through the ‘Fresh Milk Club’ and the ‘Milk it’ school milk programmes, aimed at the primary and second-level education sectors respectively.

Since 2008, through targeted promotional activities with coops each year, a number of new schools now participate in the programme.

in June 2011, a comprehensive survey of primary schools was undertaken to provide clarity on the issues driving (and limiting) participation in the programme. Perhaps the most positive indication of on-going interest in school milk provision was the extremely high response rate, with interest evident among both participating and non-participating schools. the research was conceived as more than an information gathering exercise, with questions tailored so that member co-ops could implement specific action plans based on the feedback they received. the survey, by amárach Consulting, indicated that delivery is the single most important issue in deciding participation by a school and found that, among participating schools, satisfaction at the current delivery service was scored at 80%. availability of refrigeration was shown to be the second most important factor driving participation (rated at 31% by respondents) and the level of service available enjoyed a 73% satisfaction rating. other significant drivers of participation included the strength of the relationship with the local dairy co-operative (12%), the quality of the packaging and promotional materials (7%) and the strength of the message around recycling (7%).

LOYALTY PROGRAMME

Pictured celebrating World School Milk Day in September 2011 at Scoil Chaitriona, Baggot Street, Dublin 2 were (left to right): Rebecca Kenny, Anthony Downes and Pamela Tawengwa, all aged six, with Dr. Catherine Logan, Nutrition Manager, National Dairy Council. (Photo: S. O’Neill). the NatioNal Dairy CouNCil

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among the noteworthy findings from non-participating schools was the fact that 72% expressed an interest in a loyalty programme as an incentive to join the School Milk & Dairy Programme. taking this on board, a loyalty programme was subsequently developed and launched at the end of august/early September, offering parents and staff at participating schools special discounts on family attractions, retail outlets and family weekend breaks. a newsletter sent out at regular intervals throughout the school year provides information on these offers, as well as games and competitions for children and nutritional information and tips for both parents and children. the NDC’s goal in the September 2011 – June 2012 period was to target 225 nonparticipating schools. as of the end of 2011, a conversion

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17 rate of 32% had been achieved, although logistical issues have meant that not all schools could be served immediately. the national rollout of the ‘Milk it’ programme among secondary schools was a core objective of the NDC in 2011, and the organisation is actively engaging with all 750 secondary schools across ireland, with a view to build momentum for the widest possible participation. as with the primary school programme, the goal is to increase levels of dairy consumption among students. however, marketing activities are designed to reflect the interests and aspirations of the teenage demographic. the national Milk it awards competition invites secondary school students in the republic of ireland to experience the creativity, challenges and thrills of working in an advertising agency by developing their own marketing campaigns to encourage their peers to consume their required servings of dairy daily. the competition is growing in popularity each year, with the number of entries almost doubling in its second year. the 2012 competition will culminate with an exciting final which will be held in the Mansion house in May with 20 teams pitching their dairy advertising campaigns to a select judging panel.

industry, is required to make participation pervasive across the education system. the NDC will continue to drive an effective marketing strategy that has proven resonance among younger children, teenagers, parents and teachers. there can be little better example of this than the NDC Milk it awards, detailed on page 18, which has played a hugely positive role in terms of raising awareness of milk and dairy among second-level students. its success points to a highly receptive audience for messages on the role and value of milk and dairy products in the diets of young people, something the NDC will continue to build on in 2012.

Jackie Cahill, NDC Chairman, pictured on World School Milk Day in September 2011 with pupils from Scoil Chaitriona, Baggot Street, Dublin. (Photo: S. O’Neill).

a number of one-day events in 2011 further supported the NDC’s linkages with the education sector. World School Milk Day, held on 28 September, saw over 40,000 primary school children receive their free school milk carton, as NDC member co-ops helped them celebrate the day.

RESOURCING GROWTH While the recruitment of new schools in both the primary and second-level education sectors in 2011 represents a positive advance for the programme, the current overall participation level among primary schools, at 23%, suggests that a natural limit has been reached in terms of what can be achieved through current resources. the NDC holds the view that a broader national scheme, funded by key stakeholders in education, public health and the dairy

Tara Regan, NDC School Programme & Special Projects Manager (left) is pictured with Louise Tobin, Principal, St Joseph’s Primary School, Tipperary Town at the IPPN Conference in January. the NatioNal Dairy CouNCil

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Overall winners of the NDC Milk It Advertising Awards 2011 and Senior Category Winners were ‘The Udder Option’, 5th year students – Lorna Keating, Timothy Carley, Nora Dunne and Tom Lee – from Mount Temple comprehensive School, Clontarf, Dublin. (Photo: C Mahady/Fennell Photography)

MILK IT AWARDS the NDC Milk it Secondary School advertising awards 2011 were launched in September 2010, with secondary school students invited to work in groups and plan an advertising campaign aimed at encouraging their peers to meet their recommended five servings a day from the ‘milk, cheese and yogurt’ food group.the NDC Milk it! awards programme has been recognised as an ideal transition year or CSPe project with cross-curricular linkages to Business, the NatioNal Dairy CouNCil

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Junior Category Winners of the NDC Milk It Advertising Awards 2011 were ‘MCYB Avertising Agency’, 2nd year students from Scoil Phobail Sliabh Luachra, Rathmore, Co. Kerry – Ian O’Riordan, Laura Hogan, Roisin Heuston, Alex Wright, Grace Nagle and David O’Connor – are pictured here with former NDC Chairman, Dominic Cronin.

(Photo: C Mahady/Fennell Photography)

english, home economics and art. Feedback from schools has indicated that involvement helps students to learn and develop useful skills, as well as build personal confidence and responsibility. the national finals, hosted at Dublin’s aviva Stadium on 12 april, 2011 involved 12 teams of secondary school students from eight counties who had been short listed from 274 entries. a team of four students from Mount temple Comprehensive School, Clontarf, Dublin, were named overall winners with a

campaign entitled ‘Fall in love with Milk’. the team, consisting of lorna Keating, timothy Carley, Nora Dunne and tom lee, also won the Senior Category in the competition. Meanwhile, the winners of the Junior Category were six students from Scoil Phobail Sliabh luachra, rathmore, Co. Kerry. the team of ian o’riordan, laura hogan, roisin heuston, alex Wright, Grace Nagle and David o’Connor pitched a campaign called ‘yo yo yogurt’.

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Milk It For All It’s Worth the NDC’s launch of Milk it For all it’s Worth in 2010 represented a significant advance for the organisation on a number of fronts. With co-financing of over €1m secured at Government and eu level, and the promotion of milk to younger consumers its target, Milk it For all it’s Worth confirmed the confidence enjoyed by the NDC among key national and international stakeholders and, for the industry at large, showed welcome recognition that marketing resources were long overdue to address the information and image deficit that has impacted on perceptions of dairy among younger consumers.

BENEFITS Milk it For all it’s Worth is, in essence, a three-year promotional programme designed to highlight the nutritional benefits and consumption of dairy as part of a balanced diet and healthy lifestyle. it has two core audiences, the first being11-to-20 year olds and the second women in the 20-to35 year age group. While both audiences receive targeted communications that reflect their particular concerns, there is a common ground in both the emphasis of the role milk and dairy foods have within sports nutrition. the Milk it For all it’s Worth programme is co-funded by the eu, the Department of agriculture, Food and the Marine and the dairy industry in ireland, through the NDC. a significant international dimension to the programme is that it links the NDC (as lead partner) with the dairy councils of Northern ireland and Great Britain, who each run parallel Milk it For all it’s Worth campaigns, localised to their markets.

Pictured at the Milk It For All It’s Worth IRFU and NDC Nutrition Seminar in June 2011 at the Aviva Stadium were (left to right) Dr Catherine Logan, Nutrition Manager, NDC; Ruth Wood-Martin, IRFU Performance Nutritionist; Tara Regan, School Programme & Special Projects Manager, NDC; and Emma McCrudden, Performance Nutritionist with Leinster Rugby.

the www.milkit.ie website is at the heart of the programme and is supported by a strong commitment to on-line advertising, chiefly through MSN, youtube and Facebook, reflecting the youthful demographics targeted.

EMPHASIS the first year of the Milk it For all it’s Worth Programme concluded in early 2011 with feedback indicating sports ambassadors Kevin Doyle and Derval o’rourke had served

the campaign well in the launch period but pointing to a need for a greater targeting of resources to the online element of promotional activity in the second and third years of the programme. to address this, in mid-2011, the NDC engaged with the relationship marketing agency Cawley Nea\ tBWa and, following this, agreement was reached with key funding stakeholders on a restructuring of activity. this has put an even greater emphasis on the online route over more traditional marketing approaches. the NatioNal Dairy CouNCil

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LINKAGES in 2011, rugby player rob Kearney came on board as a Milk it For all it’s Worth ambassador with Derval o’rourke also continuing her role. this helped raise the profile of the programme at high-profile events such as the National Ploughing Championships. the Milk it For all it’s Worth campaign has also created a fresh opportunity for engagement with sports and nutrition professionals and a number of activities in this area were significant over 2011. these included interactive workshops that provided coaches of young football and rugby players with up-to-date sports nutritional information, and which were organised jointly by the irFu, the Fai and the NDC. Guest speakers at the Fai workshop included Dr tom hill, Senior lecturer in Food and human Nutrition, university of Newcastleupon-tyne and Wendy Martinson oBe Bsc (hons) PG Dip, registered Dietitian and Sports Nutritionist (rSeN). Both spoke of the role of soccer coaches in promoting effective nutrition strategies among young players. Wendy Martinson explained, in her presentation, that ‘good sports nutrition – and an understanding of ways to improve rehydration and muscle recovery – can help athletes to train and compete harder and to recover more quickly, so that they are better able to take on their next training session or competition.’

Performance nutritionists, emma McCrudden and ruth Wood-Martin, who work with professional rugby players and understand the nutrition demands specifically for rugby, delivered the technical content of the irFu workshop. ruth Wood-Martin explained that ‘food is the fuel used to support the extra energy demand of exercise … without sufficient amounts of the right type of fuel, every athlete’s ability to perform in sport will suffer.’ the seminars have proved timely as more and more research demonstrates the potential for milk and dairy foods in sports nutrition – for example, research reported from loughborough university, uK, highlights the effectiveness of skimmed milk as a rehydration drink after sports, while research from Northumbria university, uK, is highlighting the beneficial role of milk in muscle recovery.

Developing the linkage between dairy and performance will continue to be a key facet of the Milk it For all it’s Worth campaign in 2012. the NatioNal Dairy CouNCil

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Caroline O’Donovan, NDC nutritionist, addresses a group of football coaches at a workshop organised as part of the Milk It For All It’s Worth Campaign.

Pictured in July 2011 at a workshop in Dublin for coaches of football players, organised jointly by the FAI and the NDC, as part of the Milk It For All It’s Worth campaign, were (left to right): Wendy Martinson OBE Bsc (Hons) PG Dip, Registered Dietitian and Sports Nutritionist (RSEN); Paul Hamill, Education Manager, FAI; Caroline O’Donovan, Nutritionist, NDC; and Dr Tom Hill, Senior Lecturer in Food and Human Nutrition, University of Newcastle-Upon-Tyne.

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Industry & Consumer Relations / Nutrition Programmes industry & Consumer relations is an important area of expertise for the NDC and, over the last number of years, the organisation has greatly enhanced its ability to anticipate, monitor and respond effectively to emerging issues and events that have the potential to impact negatively on perceptions of the dairy industry in ireland. this ability to effectively manage issues that are, by their nature, unpredictable, and to assert, on an ongoing basis, the unique nutritional profile of milk and dairy, requires organisational credibility, up-to-date knowledge and effective communication skills. the NDC has committed considerable resources to ensuring its effectiveness and capability in all these areas.

KNOWLEDGE STEWARDSHIP While issues management is an anticipatory process, it is not necessarily a defensive one. Strategic management of resources has been key to the NDC’s ability to detect and respond to emerging issues in a positive, pro-active way and the organisation sees its activities in terms of the stewardship of knowledge resources. its long-term goal is to build, maintain and assert the place of dairy in a healthy and balanced diet, while, in doing so, nurture a strengthening relationship between consumers and the irish dairy industry.

RELATIONSHIPS all the industry & consumer relations and nutrition activities of the NDC are underwritten by science-based knowledge and the work of the NDC’s in-house team, supported by the

collaborative inputs of likeminded organisations, facilitates access to world-class science and industry expertise. the NDC works in particularly close partnership with the Dairy Council of Great Britain, the Food Safety authority of ireland and teagasc. on a day-to-day basis, its pro-active approach is evidenced by information exchanges between peer organisations; by effective working relationships with relevant organisations and state bodies. With increasing recognition of the role of social media, when dealing with reputational issues, the NDC’s aim, set out in 2011, is to build capability in this area. tangible outputs in the industry & Consumer relations Programme include the Issues Management Manual, a longterm and ongoing development of an electronic document, which provides the industry with credible information for action in a variety of scenarios.

BROADCAST SUBMISSION the relatively high level of misconceptions around dairy is an issue of perennial concern for the industry, with one particular challenge being that erroneous ideas can often inform decision making at high levels. the proposal of the Broadcasting authority of ireland (Bai) to restrict the advertising of cheese to children under the age of 18 has been on the industry & Consumer relations radar of the NDC for some time and received considerable media attention in 2011, with the message from various stakeholders being that such a move was not in line with Government dietary guidelines. the Bai’s proposed the NatioNal Dairy CouNCil

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NUTRITION PROGRAMME

‘Children’s Commercial Communications Code’ was open to public consultation until 14 october 2011 and the NDC submitted a nutrition-based formal response, calling for an exemption for cheese from the proposed nutrient profiling model. the NDC is keenly aware that the miscategorisation of cheese as ‘less healthy’ would not only create considerable confusion amongst parents and children but would also pose the NatioNal Dairy CouNCil

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significant reputational damage to a food group that is an important part of our economic output. this would send out a very negative message to emerging export markets, where interest in dairy products is growing strongly. on the domestic front, more than one commentator has noted a potentially absurd situation whereby, if the ban went ahead, cheese would be categorised as ‘less healthy’ than, for example, diet cola.

While the Bai has made no definitive statement, to date, on how it will proceed, the NDC believes that its arguments have been positively received among the general public. in 2012, the NDC will continue to monitor developments closely and our goal is to ensure that this threat to our industry is definitively lifted and producers of milk and dairy products are allowed to communicate the nutritional value of their outputs as part of a balanced diet, in line with Government dietary guidelines.

the Nutrition Programme, led by Dr Catherine logan, has seen the NDC develop into a major national resource in terms of up-to-date science-based information on the role of dairy in balanced diets. recognising health and wellness professionals as a key target audience, the NDC now publishes two science-based newsletters. Dairy Nutrition (DN) Forum, which was first published in 2009, is aimed at doctors, nurses and other health professionals, while Sports Nutrition (SN) Forum offers science-based information to those working in the sports and wellness industry. the first issues of SN Forum were published in 2011. the NDC’s broad scope of information and communication activities is, at all times, informed by outputs from the Nutrition Programme. events such as the health & Wellbeing evenings, and the NDC’s series of sports nutrition seminars (organised as part of the Milk it For all its Worth Programme) confirm the huge public appetitive for credible, science-based information and an ongoing role for the NDC in its delivery.

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Meet our Board

Standing (left to right): Dominic Cronin, John Murphy, Kevin Kiersey, Frank Tobin, John Egan, Sean McAuliffe, Eamonn Bray, Tom Phelan, Padraig Gibbons and Conor Ryan.

Seated (left to right): Tim Maher, ZoĂŤ Kavanagh (CEO & Company Secretary), Jackie Cahill (Chairman), Stephen Shorten (Vice Chair), Patrick Kelly (resigned February 2012) and Mary Fox. Not pictured: Marty Murphy (appointed March 2012).

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Meet the team

(Left to right) Dr Catherine Logan, Nutrition Manager; Tara Regan, School Programme & Special Projects Manager; Zoë Kavanagh, Chief Executive; Lynda Thompson, PA to CEO; Niamh Kingston, Office Administrator; and Caroline O’Donovan, Nutritionist. (Photo: S. McCarthy). the NatioNal Dairy CouNCil

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The National Dairy Council (a company limited by guarantee and not having a share capital)

Reports and Financial Statements for the year ended 31 December 2011

Contents DireCtorS aND other iNForMatioN DireCtorS’ rePort StateMeNt oF DireCtorS’ reSPoNSiBiliteS iNDePeNDeNt auDitorS’ rePort iNCoMe aND eXPeNDiture aCCouNt BalaNCe Sheet CaSh FloW StateMeNt NoteS to the FiNaNCial StateMeNtS

26 27 28 29 - 30 31 32 33 34 - 38

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THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital) DIRECTORS AND OTHER INFORMATION

DIRECTORS

REGISTERED OFFICE

Mr. e. Bray Mr. J. Cahill (Chairman) Mr. D. Cronin (Chairman resigned position 14 September 2011) Mr. J. egan Mrs. M. Fox Mr. P. Gibbons Mr. K. Kiersey Mr. t. Maher Mr. S. Mcauliffe Mr. M. Murphy (appointed 28 March 2012) Mr. J. Murphy (appointed 14 September 2011) Mr. t. Phelan Mr. C. ryan Mr. S. Shorten (Vice Chairman) Mr. F. tobin

CHIEF EXECUTIVE helen Brophy (resigned 30 March 2011) Zoe Kavanagh (appointed 4 april 2011)

the NatioNal Dairy CouNCil

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innovation house 3 arkle road Sandyford industrial estate Dublin 18 reGiStereD NuMBer 21650

SOLICITORS Corrigan & Corrigan St. andrew Street Dublin 2 Gleeson McGrath Baldwin angelsea Street Dublin 2

AUDITORS

BANKERS aiB Bank 1 lower Baggot Street Dublin 2 aiB Bank St. helen’s 1 undershaft london eC3a 8aB J & B Davy Davy house 49 Dawson Street Dublin 4 aCC Bank Charlemont Place Dublin 2

Deloitte & touche Chartered accountants Deloitte & touche house earlsfort terrace Dublin 2

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DIRECTORS’ REPORT

the board of directors submit their annual report and the financial statements for the year ended 31 December 2011. in the opinion of the directors the reporting and disclosure requirements of the Companies (amendment) act, 1986 do not apply to the National Dairy Council, on the basis that the company does not trade for the acquisition of gain by the members.

driving the consumption and positioning of milk and dairy products. the NDC’s vision is to be the authoritative and trusted voice in advancing the consumer perception and consumption of irish milk and dairy products.

DIRECTORS AND SECRETARY

the principal activity of the National Dairy Council (“NDC”) is to support irish dairy farmers by driving the positive position and consumption of milk and dairy products through integrated marketing and communications programmes, based on informed scientific evidence.

the current members of the Board of Directors are set out on page 26. Mr. D. Cronin resigned as Chairman on 14 September 2011 and Mr. J. Cahill was appointed Chairman at that date. Mr. h. Corbally resigned as ViceChairman and from the Board on 14 September 2011. Mr. S. Shorten was appointed as Vice-Chairman on the 14 September 2011. Mr. P. Kelly resigned from the Board on 9 February 2011. Mr. M. Murphy was appointed to the Board on 28 March 2012.

RESULTS

BOOKS OF ACCOUNT

the results for the year and the state of affairs of the company are set out on pages 31 and 32 respectively.

to ensure that proper books and accounting records are kept in accordance with Section 202 of the Companies act, 1990, the directors have employed appropriately qualified accounting personnel and have maintained appropriate accounting systems. the books of account are kept at innovation house, 3 arkle road, Sandyford industrial estate, Dublin 18.

PRINCIPAL ACTIVITIES

RISKS AND UNCERTAINTIES the main risk facing the company during the year and anticipated in future years is the receipt of levy contributions and maintaining sufficient reserves to allow the entity operate efficiently and effectively.

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

PUBLICATION the directors are responsible for the maintenance and integrity of the website. legislation in the republic of ireland concerning the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

AUDITORS the auditors, Deloitte & touche, Chartered accountants, continue in office in accordance with Section 160(2) of the Companies act, 1963.

Signed on behalf of the Board:

J. Cahill Director

S. Shorten Director

28 March 2012

EVENTS AFTER THE BALANCE SHEET DATE there have been no significant events affecting the financial statements since the year end.

the NDC has a vital role in supporting the dairy sector in the NatioNal Dairy CouNCil

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STATEMENT OF DIRECTORS’ RESPONSIBILITIES

irish company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. in preparing those financial statements, the directors are required to:

•

select suitable accounting policies and then apply them consistently;

•

make judgements and estimates that are reasonable and prudent; and

•

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

the directors are responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements are prepared in accordance with accounting standards generally accepted in ireland and comply with irish statute comprising the Companies acts, 1963 to 2009. they are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

the NatioNal Dairy CouNCil

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital)

We have audited the financial statements of the National Dairy Council (a company limited by guarantee and not having a share capital) for the year ended 31 December 2011 which comprise the income and expenditure account, the Balance Sheet, the Cash flow Statement and the related notes 1 to 13. these financial statements have been prepared under the accounting policies set out therein. this report is made solely to the company’s members, as a body, in accordance with Section 193 of the Companies act, 1990. our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. to the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS the directors are responsible for preparing the financial statements, as set out in the Statement of Directors’ responsibilities, in accordance with applicable law and accounting standards issued by the accounting Standards Board and published by the institute of Chartered accountants in ireland (Generally accepted accounting Practice in ireland).

our responsibility, as independent auditor, is to audit the financial statements in accordance with relevant legal and regulatory requirements and international Standards on auditing (uK and ireland).

We report to you our opinion as to whether the financial statements give a true and fair view, in accordance with Generally accepted accounting Practice in ireland, and are properly prepared in accordance with irish statute comprising the Companies acts, 1963 to 2009. We also report to you whether in our opinion: proper books of account have been kept by the company; and whether the information given in the Directors’ report is consistent with the financial statements. in addition, we state whether we have obtained all the information and explanations necessary for the purpose of our audit and whether the company’s balance sheet and income and expenditure account are in agreement with the books of account.

We also report to you if, in our opinion, any information specified by law regarding directors’ remuneration and directors’ transactions is not disclosed and, where practicable, include such information in our report.

BASIS OF AUDIT OPINION We conducted our audit in accordance with international Standards on auditing (uK and ireland) issued by the auditing Practices Board. an audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. it also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements and of whether the accounting policies are appropriate to the company’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. in forming our opinion we evaluated the overall adequacy of the presentation of information in the financial statements.

We read the Directors’ report and consider the implications for our report if we become aware of any apparent misstatement within it. our responsibilities do not extend to other information.

the NatioNal Dairy CouNCil

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital)

OPINION in our opinion the financial statements: • give a true and fair view, in accordance with Generally accepted accounting Practice in ireland, of the state of the affairs of the company as at 31 December 2011 and of the deficit for the year then ended; and • have been properly prepared in accordance with the Companies acts, 1963 to 2009.

We have obtained all the information and explanations we considered necessary for the purpose of our audit. in our opinion proper books of account have been kept by the company. the company’s balance sheet and its income and expenditure account are in agreement with the books of account. in our opinion the information given in the Directors’ report is consistent with the financial statements.

Marguerite larkin For and on behalf of Deloitte & touche Chartered accountants and registered auditors Dublin

28 March 2012

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THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital) iNCoMe aND eXPeNDiture aCCouNt For the year eNDeD 31 DeCeMBer 2011 2011 €

2010 €

2,945,647 ________

2,445,027 ________

3,186,783 73,936 191,228 ________ 3,451,947 ________ (506,300) ________ (2,538)

2,769,533 156,894 252,080 ________ 3,178,507 ________ (733,480) ________ (7,195)

Deficit on ordinary activities after taxation

(508,838) =========

(740,675) =========

opening accumulated surplus

1,600,040

2,340,715

Notes

Income

1

expenditure Direct expenses establishment expenses administrative expenses total expenses Deficit on ordinary activities before taxation

2

taxation

4

(508,838) (740,675) ________ ________ retained accumulated surplus carried forward 9 1,091,202 1,600,040 ========= ========= all of the results for the current and prior year derive from the continuing activities of the company. all recognised gains and losses for the current and prior year are included in the income and expenditure account.

Deficit on ordinary activities after taxation

the financial statements were approved by the Board of Directors on 28 March 2012 and signed on its behalf by:

J. Cahill Director

S. Shorten Director the NatioNal Dairy CouNCil

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THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital) BalaNCe Sheet For the year eNDeD 31 DeCeMBer 2011

2011 

2010 €

5

5,716 ________

28,057 ________

Debtors Bank

6

202,231 1,590,870 ________ 1,793,101

349,498 1,550,326 ________ 1,899,824

CreDItorS: (amounts falling due within one year)

7

(707,615) ________ 1,085,486 ________ 1,091,202 =========

(327,841) ________ 1,571,983 ________ 1,600,040 =========

9

1,091,202 =========

1,600,040 =========

Notes

FIXeD ASSetS tangible assets

Current ASSetS

net Current ASSetS net ASSetS

represented by: ACCuMulAteD SurpluS

the financial statements were approved by the Board of Directors on 28 March 2012 and signed on its behalf by:

J. Cahill Director

S. Shorten Director

the NatioNal Dairy CouNCil

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THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital) CaSh FloW StateMeNt For the year eNDeD 31 DeCeMBer 2011

2011 €

2010 €

(506,300)

(733,480)

(10,150)

(28,782)

Depreciation

13,194

31,485

(Profit)/loss on disposal of fixed assets

(1,857)

76

Decrease/(increase) in debtors

147,406

(45,805)

increase/(decrease) in creditors

379,774 ________

(67,172) ________

22,067

(843,678)

10,150

28,782

(2,677)

(8,184)

Payments to acquire fixed assets

(1,162)

(9,369)

receipts from sale of fixed assets

12,166 ________

90 ________

40,544 =========

(832,359) =========

Notes reConCIlIAtIon oF operAtInG DeFICIt to net CASH FloW FroM operAtInG ACtIVItIeS operating deficit less: interest income

net CASH InFloW/(outFloW) FroM operAtInG ACtIVItIeS returnS on InVeStMent AnD SerVICInG oF FInAnCe interest income tAXAtIon taxation paid FInAnCInG ACtIVItIeS

InCreASe/(DeCreASe) In CASH poSItIon For tHe YeAr

10

the NatioNal Dairy CouNCil

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THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital) NoteS to the FiNaNCial StateMeNtS For the year eNDeD 31 DeCeMBer 2011

1.

ACCOUNTING POLICIES Basis of preparation the financial statements have been prepared in accordance with accounting standards generally accepted in ireland and irish statute comprising the Companies acts, 1963 to 2009. accounting standards generally accepted in ireland in preparing financial statements giving a true and fair view are those published by the institute of Chartered accountants in ireland and issued by the accounting Standards Board.

Basis of Accounting the financial statements have been prepared under the historical cost convention.

Income income is comprised of voluntary levies, grant income, donations and interest receivable. income received in the form of voluntary levy contributions is based on a price per litre of milk produced and is recognised on a receipts basis.

Grant income is credited to income in the year to which it relates. expenditure expenditure is accounted for on an accruals basis.

the NatioNal Dairy CouNCil

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Fixed Assets Fixed assets are held at cost less accumulated depreciation.

Depreciation of fixed assets is provided on a straight line basis as follows: Motor vehicles office equipment Computer equipment

20% per annum 25% per annum 25% per annum

pension the company operates a defined contribution pension scheme. Contributions payable to the scheme are charged to the income and expenditure account in the period to which they relate. taxation the company is exempt from Corporation taxation in respect of its trading activities. Passive income, if any, (such as deposit interest) remains taxable. leases lease rentals in respect of assets held under operating leases are expensed in the period to which they relate.

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THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital) NoteS to the FiNaNCial StateMeNtS (CoNtiNueD) For the year eNDeD 31 DeCeMBer 2011

2.

DEFICIT ON ORDINARY ACTIVITIES BEFORE TAXATION the deficit before taxation is stated after charging: Directors’ remuneration Directors’ expenses auditors’ remuneration Depreciation operating leases loss on disposal of fixed assets and after crediting: Profit on disposal of fixed assets interest income

3.

2011  59,342 24,671 11,000 13,194 3,780 -

2010  45,000 24,178 11,000 31,485 3,780 76

1,857 10,150 =========

28,782 =========

2011  414,711 74,134 42,142 24,318 ________ 555,305 =========

2010  428,132 43,065 30,986 ________ 502,183 =========

EMPLOYEES

Wages and salaries redundancy costs Social Welfare costs Pension

the average number of employees for the year was 8 (2010: 8). the number of employees at the year ended 31 December 2011, including eleven directors, was 16 (2010: 17).

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the NatioNal Dairy CouNCil

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THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital) NoteS to the FiNaNCial StateMeNtS (CoNtiNueD) For the year eNDeD 31 DeCeMBer 2011

4.

TAXATION Corporation tax was incurred on interest earned as follows: Corporation tax @ 25%

5.

2011  2,538 =========

2010  7,195 =========

TANGIBLE ASSETS

Cost: at 1 January 2011 additions Disposals At 31 December 2011 Depreciation: at 1 January 2011 Charge for the year Disposals At 31 December 2011 net book value: At 31 December 2011

at 1 January 2011

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Computer equipment 

office equipment 

Motor Vehicles 

total 

45,677 1,162 (1,261) ___________ 45,578 ___________

40,653 ___________ 40,653 ___________

68,381 (68,381) ___________ ___________

154,711 1,162 (69,642) ___________ 86,231 ___________

39,296 4,080 (952) ___________ 42,424 ___________

28,977 9,114 ___________ 38,091 ___________

58,381 (58,381) ___________ ___________

126,654 13,194 (59,333) ___________ 80,515 ___________

3,154 =========

2,562 =========

=========

5,716 =========

6,381 =========

11,676 =========

10,000 =========

28,057 =========

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THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital) NoteS to the FiNaNCial StateMeNtS (CoNtiNueD) For the year eNDeD 31 DeCeMBer 2011

6.

DEBTORS: (amounts falling due within one year)

other debtors Vat recoverable Corporation tax

7.

2010 € 119,913 229,212 373 ________ 349,498 =========

2011 € 554,182 135,807 17,626 ________ 707,615 =========

2010 € 238,203 60,604 29,034 ________ 327,841 =========

CREDITORS: (amounts falling due within one year)

trade creditors accruals and sundry creditors Paye/PrSi

8.

2011 € 50,928 150,791 512 ________ 202,231 =========

PENSION the company operates a defined contribution pension scheme. Contributions payable in respect of the year ended 31 December 2011 amounted to €24,318 (2010: €30,986). there were no pension contributions outstanding at the year end (2010: €Nil).

9.

ACCUMULATED SURPLUS

accumulated surplus at the beginning of the year Deficit for the year

accumulated surplus at the end of the year

2011 € 1,600,040 (508,838) ________

2010 € 2,340,715 (740,675) ________

1,091,202 =========

1,600,040 =========

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THE NATIONAL DAIRY COUNCIL

(a company limited by guarantee and not having a share capital) NoteS to the FiNaNCial StateMeNtS (CoNtiNueD) For the year eNDeD 31 DeCeMBer 2011

10.

ANALYSIS OF CHANGES IN NET FUNDS

Cash at bank and in hand

11.

opening balance €

Cash flow €

Closing balance €

1,550,326 ___________

40,544 ___________

1,590,870 ___________

COMMITMENTS Operating leases at the balance sheet date the company had annual commitments under non-cancellable operating leases, expiring as follows: 2011 2010 € € Between two and five years – office equipment

-

1,380

Guarantees the company is a member of the Geie european Milk Forum, a grouping set up to promote dairy products throughout europe. the company, in conjunction with the other nine members of the forum, has provided a guarantee in relation to any commitments of the forum to third parties which remain outstanding following liquidation of the forum.

12.

RELATED PARTY TRANSACTIONS Certain directors of the company are also directors of the co-operatives from which the company receives voluntary levy income. the total voluntary levy income received in the normal course of business from these co-operatives amounted to €2,204,642 (2010: €1,804,104). the total expenses claimed by these directors for the year ended 31 December 2011 amounted to €23,990 (2010: €10,037). the disposal of fixed assets during the year included a disposal at market value to a family member of one of these directors. the net book value of the asset sold amounted to €10,000. the sale proceeds received amounted to €12,000. the directors held nine meetings during the year ended 31 December 2011 (2010: 7 meetings).

13.

APPROVAL OF FINANCIAL STATEMENTS the financial statements were approved by the Board of Directors on 28 March 2012.

the NatioNal Dairy CouNCil

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the NatioNal Dairy CouNCil

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the national Dairy Council Innovation House, 3 Arkle Road Sandyford, Dublin 18, Ireland Tel: + 353 (0)1 290 2451 Fax: + 353 (0)1 290 2452 www.ndc.ie

the NatioNal Dairy CouNCil

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