Dairy: Food for Life Annual Report 2010
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Annual Report 2010
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Dairy: Food for Life Annual Report 2010
Dairy: Food for Life
CONTENTS
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 E: info@ndc.ie W: www.ndc.ie
4 Chairman’s Statement
© National Dairy Council (NDC) 2011. All rights reserved. No part of this publication may be reproduced without prior permission from the NDC. The NDC has made all reasonable efforts to ensure the accuracy of information presented in this document, but can accept no responsibility for omissions or errors.
5 Chief Executive’s Statement
1 Reports and Financial Statements 1
22 NDC Board
NDC Board Sub-Committees Annual Review 23 2010 & 2011 Plan
25 NDC Staff
Pantone 342
Published by IFP Media, 31 Deansgrange Road, Blackrock, Co Dublin www.ifpmedia com
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Dairy: Food for Life Annual Report 2010
Chairman’s Statement Having been tested by the very severe challenges of the preceding two years, 2010 was a year which brought relief and, ultimately, grounds for optimism for Irish farm families and the dairy industry that recovery was on its way. Improved international commodity prices were welcomed both as a reflection of the inherent value of our dairy outputs and as a necessary development to ensure the survival of our dairy farmers. It is pleasing, then, to introduce the National Dairy Council’s Annual Report 2010 noting that we have continued to experience relative stability in commodity prices well into 2011. While there are always risks and volatility inherent in the dynamics of international supply and demand, the underlying trends in the marketplace are now broadly supportive of growth. Over the course of 2010, the NDC continued to deliver against the ambitious objectives set out in Dairy: Food for Life. Although we are a small organisation, with finite resources, the organisation continued to show an innovative and determined approach to its advocacy and promotional work. The ongoing positive consumer response to the Farmed in the Republic of Ireland trade mark was testament to this. In addition, the NDC succeeded in developing the Milk It For All Its Worth Programme, a vital EU funded initiative focusing on teenage attitudes towards dairy. Throughout this time, our reputation as a trusted source of information and an advocate for the Irish dairy industry has continued to strengthen. The NDC extended its marketing programmes by running successful advertising campaigns for both Irish butter and Irish Cheddar. I have no doubt that, under the leadership of new Chief Executive, ZoÍ Kavanagh, the NDC will continue to lead the way as a highly-motivated, output-driven organisation. Ms Kavanagh brings exceptional experience and insight from previous leadership roles in the international beverage industry as well as a solid grounding in the challenges of the Irish market and Irish agriculture. On behalf of the Board, staff and all stakeholders of the NDC, I am delighted to welcome her to the organisation and to assure her of our every support as she leads it forward. One of the enduring strengths of the NDC is the direct and loyal support of dairy farmers and member dairies, who fund
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its activities through the dairy levy. By signalling their ongoing commitment, even in the most financially straitened times, they have played their part in ensuring the culture of achievement that characterises the NDC continues. I would like to sincerely extend my thanks to all of you for your high levels of support. I would also to recognise the contribution of my fellow Board members and the members of the Sub-Committees of the NDC. Following elections earlier in the year, we warmly welcome those new members who have joined the Board. By their presence, we continue to extend our expertise and scope. I would also like to thank all those who have stepped down from the Board for their service and commitment. It goes without saying that we continue to be hugely appreciative of the hard work and commitment of the staff of the NDC, a talented and close knit group of professionals who drive the organisation forward with exceptional resolve. On behalf of the Board, I would like, in this vein, to acknowledge the contribution of former Chief Executive Helen Brophy, who led the organisation through its successes in 2010. We wish her every success in her new role in the agri-food industry. It must sometimes seem that challenge has become part of the everyday vocabulary of Irish dairying. Yet, I believe we have emerged from a difficult period more determined and more focused on our future goals than at any other time in the recent past. Agriculture in general, and dairy in particular, are now recognised as hugely important to the future economic development and wellbeing of our country and I am proud to represent an organisation that is committed to excellence and to showcasing the capability and potential of this industry. The value of milk and dairy products to a balanced diet and healthy living is an enduring message of the NDC. We will continue to refresh, strengthen and develop it over 2011 and beyond.
Dominic Cronin Chairman The National Dairy Council
Dairy: Food for Life Annual Report 2010
Chief Executive’s Statement: 2010 in Review The publication of the NDC Annual Report 2010 provides an excellent opportunity to capture the sense of progress that has driven the activities of the National Dairy Council (NDC) over the course of the previous year. These achievements and outputs, as well as our objectives for 2011, are also set out in greater detail in the Annual Review 2010 & 2011 Plan, published earlier this year. As incoming Chief Executive, the Annual Report 2010 also provides an ideal opportunity to assert my commitment to continuing our progress under Dairy: Food for Life, the fiveyear strategy document which has provided the roadmap for the organisation since 2008. Last year saw the midpoint of this strategic plan reached and maintaining the sense of momentum that has characterised its implementation to date has been a priority for me in the ‘bedding in’ period of this new role. Of course, one of the responsibilities of a new Chief Executive is to review progress to date against strategy and to adapt and develop the strategic process as necessary. I do so with the clear goal of ensuring that, throughout 2011, we continue to move from success to success. The NDC’s organisational priorities are set out across six programme areas and I am confident that, notwithstanding any fine tuning that particular circumstances demand, we are fully on track to serve the needs of consumers, the goals of our industry and meet our own organisational objectives in 2011. With this in mind, I would like to thank the Board of the NDC for the exceptional support I have received since taking up this role. I look forward to working with them, with the Sub Committees of the NDC and, of course, with the staff of the organisation, who have extended such a warm welcome to me. I would also like to thank my predecessor, Helen Brophy, for the central role she played in developing the NDC into an organisation that is relevant and credible to today’s consumers, and which has carved out a distinct long-term role in our industry’s development. Over the course of 2011, I look forward to meeting, engaging and working with the wider community of stakeholders within this industry and to share ideas on how we can continue the journey of progress that is underway. As the Chairman has noted, the latter part of 2010 and early 2011 can be characterised as a period in which a sense of stability returned to international commodity prices. It is too
early to draw long-term conclusions but we have learned a salutary lesson since the price spike of 2007/08, which brought such optimism and then disappointment to the dairy sector. Sustaining the current price levels is a more appealing prospect than any sudden, unsustainable rise, which is likely to be quickly corrected by an up-scaling of production elsewhere in the global marketplace. It would be impossible to talk about international commodity prices without commenting on the broad repositioning of Irish agri-food over the last three years. Exports in all categories, including dairy, recovered significant ground in 2010, leading to welcome prominence for the sector in economic debate here. We are also seeing a fresh interest in farming expressed through growing demand for places in agricultural college. A new generation is recognising that agriculture is not only our most enduring industry but our greatest national resource. Reenergising our sluggish domestic economy remains an ongoing challenge but also a priority for the new Government, which came to power with a ringing endorsement for change. While no one can be in any doubt about the scale of the challenge in certain areas, it is encouraging to see a spirit of optimism returning to general debate, and a recovery of the ‘can do’ attitude that was instrumental to energising our economy in the 1990s. Over 2010, these domestic challenges were reflected in ongoing pressure on supplier margins, with discounting and promotional activity a major feature of retailer and foodservice marketing. This trend continues into 2011. It is against this backdrop that the value of NDC activities over the course of 2010 can be measured. The five original programmes set out in Dairy: Food for Life are: • Advocacy & Communications Programme • Marketing & Promotion Programme • School Milk & Dairy Programme • Issues Management and Nutrition Programmes • Accountability & Corporate Governance Programme To these can be added the NDC-led Milk It For All It’s Worth marketing initiative, which was developed in association with the relevant dairy marketing organisations of Britain and Northern Ireland, and financed by the EU, the National Dairy Council and the Department of Agriculture, Fisheries & Food.
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Dairy: Food for Life Annual Report 2010
Marketing & Promotion Programme In 2010, the NDC further strengthened its standing as a trusted advocacy organisation among consumers, farmers, industry and other stakeholders. Key initiatives in support of this include the decision to extend the scope of our promotional activity to butter and cheese. This was significant, not only in terms of broadening the relationship the NDC enjoys with consumers, but as evidence of the growing confidence invested in the organisation by the dairy industry. Follow-up market research – a hallmark of the NDC approach – confirmed the success of the approaches taken and points the way to an increased role of the NDC across various market segments. Building on detailed consumer research, the butter campaign highlighted the messages of taste, convenience and versatility. A print campaign ran from June to October and focused on traditional usage occasions involving toast and baked potatoes. ‘Cheesy Moments – What’s Yours?’ ran for a shorter period of time but over a broader range of media, including billboards, press, national and local radio, and online advertising. Focusing on Irish Cheddar and stressing versatility and convenience, the campaign was notable for being the first ever to bring the seven brands of cheddar produced in Ireland (Avonmore, Charleville, Dubliner, Killowen, Kilmeaden, LowLow and Wexford) into one advertising execution. The Farmed in the Republic of Ireland trade mark, launched in late 2009, benefited from a high-impact advertising campaign which ran for a total of 32 weeks during 2010. The choice of Paul O’Connell as the lead ambassador of the campaign, and the focus of the message on enduring community values, continued to pay dividends. Evaluations conducted in January and October 2010 confirmed the campaign had surpassed expectations across a range of consumer response measures. Given the challenging economic backdrop to the launch of the trade mark, no outcome was more significant than the finding that it had had an immediate impact on a large swathe of consumers as they made their milk purchasing decisions. Fifty five per cent of consumers now look for milk carrying the NDC Mark. Equally of interest, the research confirmed the trade mark was an important contributing factor in a number of foodservice and retail contracts won by NDC members in the first months of its launch. Recognising the need to address the particular challenges of the foodservice industry, a sector-specific marketing programme, centring around a dairy certificate of origin for display in customer premises, was initiated in June 2010 and is being further developed in 2011. The NDC’s now annual presence at events such as the National Ploughing Championships, the Tullamore Show and the National Dairy Show were among the highlights of the year’s promotional activity and the organisation’s innovative choice of an inflatable exhibit at the National Ploughing Championships proved not only eye catching but hugely popular among those attending. The NDC was also delighted to sponsor the annual Women & Agriculture Conference, which was fully attended and proved an outstanding success.
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Advocacy & Communications Programme The NDC Quality Milk Awards entered its second year in 2010, attracting a talented field of entrants and 11 finalists, representing eight co-ops, in total. The overall winners were Kevin and John Walsh, Dungarvan, who are manufacturing suppliers to Glanbia, with runners-up Robert and Shirley Shannon, who supply Lisavaird Co-op. On behalf of the NDC, I extend congratulations to them and to all those who were recognised by the awards, including: Runner-up, year-round supply category: • Noel O’Donovan, Ballymacwilliam, Clonakilty, Co. Cork (Barryroe Co-op) Runner-up, manufacturing supply category: • Michael Keating, Kilcoleman, Rathkeale, Co. Limerick (Kerry Agribusiness) Judges’ special recognition award for care of the environment: • Billy & Deirdre Connor, Crossmolina, Co. Mayo (Connacht Gold Co-op) • Sean & Mary Hurley, Ballintemple, Arklow, Co. Wicklow (Glanbia) Judges’ special recognition award for best facilities: Patrick & Phylis Kennedy and son, Martin, Toomevara, Nenagh, Co.Tipperary (Arrabawn Co-op) Undoubtedly, the distinguished judging panel has played a key role in the success of the awards. Between them, Dr Jack Kennedy, Dr David Gleeson and Prof. Paddy Wall bring together an extraordinary range of expertise and insight. Their positive words about the opportunity for Irish agriculture at the awards ceremony in September reflected the levels of excellence they encountered in the judging process. Ongoing collaboration with the Irish Osteoporosis Society (IOS) continued in 2010. Keynote activities included the now annual Pancake Tuesday promotion featuring one of the country’s most popular broadcasters, RTÉ’s Ryan Tubridy. As in previous years, widespread media coverage proved highly effective in sharing the message of the role of dairy in combating osteoporosis. One of the most exciting new initiatives for the NDC in 2010 was the launch of the Milk It For All It’s Worth programme. Of interest to the Advocacy & Communications Programme was the fact that it has provided direct opportunity for collaboration with the IOS through osteoporosis-focused seminars. The Dairy Den has created an important communications interface between the NDC and the mothers of young children. Two important foundation stones in this project were the launch of the updated booklets on weaning and pre-school nutrition, which were published in 2010. The Health & Wellbeing Evenings have become a regular and highly popular part of the NDC calendar of events. In 2010, events were held in Donegal, Cork, Kilkenny and Sligo, all with
Dairy: Food for Life Annual Report 2010
the support of four NDC member dairies and all proving hugely popular with local audiences. A similar schedule of events is planned for 2011. The NDC has always recognised the need to engage with industry on a variety of levels and to have ready access to the intellectual resources and capability of the sector to fulfil its goals. In this respect, the establishment of the Scientific, Nutrition & Technical Committee (SNT) has proved an important decision and, thanks to its expert panel of participants, has been hugely influential in terms of guiding our communication strategy. Among our priority audiences, health professionals rank highly and the resources invested in the Health & Wellbeing programme since the launch of the Dairy: Food for Life programme were seen to be rewarded in 2010. Also, by the year’s end, almost 80% of GP surgeries in Ireland made NDC material available to their patients. Directly targeting the medical audience, three editions of the health professional newsletter DN Forum were published in 2010 and distributed to GPs, public health nurses, practice nurses and dietitians on a countrywide basis. This influential audience was further served by the launch of the NDC’s online electronic nutrition library in 2010. Internationally, the NDC has continued to build new links and alliances through involvement in key international fora, including the Global Dairy Platform, the European Dairy Marketing Forum and the Utrecht Group. School Milk & Dairy Programme The supply of milk to primary and secondary school pupils has been a key element of the NDC’s remit since the 1980s. However, with Dairy: Food for Life, it was recognised that there needed to be a significant investment of resources to reinvigorate
the programme if this was to remain viable and worthwhile for all participants. With the successful nationwide launch of the Fresh Milk Club in primary schools in 2009, the NDC achieved one of its major objectives. The launch led directly to 4,840 new pupils and 90 new schools joining the programme during the 2009/2010 school year. The 2010/2011 school year saw an additional 54 primary schools join the programme, signalling its continued appeal. Over 70 visits to primary schools were organised as part of the FAI School Liaison programme as the NDC continued to work closely with the sporting organisation. The programme focused particularly on schools interested in joining the School Milk & Dairy Programme. Secondary schools were a major target for promotional activity in 2010, in a programme that drew on the learnings of the pilot programme undertaken in 2009. A total of 34 new secondary schools joined the School Milk & Dairy Programme in the course of the 2010/2011 school year. Though not as many as had initially been hoped, the achievement was impressive given that longer lead-in times are a feature of the secondary school system, which, being larger, has more complex decision-making processes. One of the NDC’s most successful initiatives in 2010 confirmed its ability to engage with teenage audiences and the opportunities presented by harnessing their creative potential. The NDC Milk It Advertising Awards was a new concept introduced in 2010, in which second-level students were invited to research, create and plan an advertising campaign that would encourage their peers to reach their targeted daily allowance of five dairy portions a day. The initial invitation to participate saw over a third of the country’s secondary schools respond, from all 26 counties. At a gala event in April 2011, 12 short-listed finalists
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Dairy: Food for Life Annual Report 2010
strengthened the knowledge base of the NDC in key areas. The NDC has also sought to strengthen relationships with a number of key organisations, including Teagasc, Moorepark, and the Food Safety Authority of Ireland (FSAI), recognising their expertise in a number of areas relevant to the NDC, including the complex field of nutrition and health claims. Participation in the FSAI Health Claims Seminar in Dublin in May 2010 was significant in this regard. The NDC has closely monitored and reviewed the progress of the new broadcasting legislation, which may have implications for the advertising of foods of a specific nutritional composition, with potentially unfair consequences for cheese producers. With new dietary guidelines expected from the Government, the NDC will also closely monitor and interpret any statements in the context of scientifically-validated information on the role of dairy in a healthy and balanced diet. The ongoing publication of DN Forum and access to the online e-library are anticipated to represent a significant resource in the NDC’s advocacy efforts at this public policy level.
I love it when you melt in the middle
That moment savoured. That irresistible pleasure. We’ve enjoyed the smooth taste of Irish butter for generations and thanks to Arrabawn, Avonmore, Bandon,Connacht Gold, Kerrygold and North Cork, we still do.
Irish Butter. It’s second nature www.ndc.ie
pitched their campaigns to an expert panel of judges. A team of students from Mount Temple Comprehensive School, Clontarf, Co. Dublin were the Senior and Overall winners of the awards, with a campaign called ‘Fall in Love with Milk’. Students from Scoil Phobail Sliabh Luachra, Rathmore, Co. Kerry, won the Junior title, with a campaign called ‘Yo Yo Yogurt’. Issues Management and Nutrition Programmes Dairy: Food for Life recognises, as an absolute priority, the need for the NDC to develop an Issues Management Manual and work has been ongoing on the project since the establishment of the Issues Management Committee (IMC) in 2008. Through its work, the IMC has played a hugely valuable role in allowing the NDC to create a valuable industry resource and one that ensures a high-level of issues management capability is readily available to its members. In 2011, the NDC will continue to build on work already done and identify areas of priority for specific attention. As with all issues management strategies, communication is vital and the NDC, with the support of the IMC, will continue to disseminate its findings to industry to ensure members have the capacity to prepare for, pre-empt and manage issues effectively. A further resource in this regard has been the establishment of the SNT committee, which has
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Accountability & Corporate Governance Programme Stakeholder expectations of integrity, transparency and accountability are, rightly, higher than ever. The Accountability & Corporate Governance Board Sub-Committee is hugely important in affirming the NDC’s priorities in this regard. Delivering value for money has also become a priority for all organisations seeking to be fit for purpose as we emerge from the downturn. The NDC has engaged in a number of thorough cost-efficiency reviews focused on ensuring the organisation functions at optimum level with minimum wastage. Budgetary pre-planning has always been an important element of all programme activity. This is now undertaken with a priority goal of ensuring costings are correctly anticipated from the start. In 2011, the NDC will continue to review its processes to ensure that value is being achieved and that the organisation is sufficiently investing in its capacity for future development. In 2010, the decision was taken to relocate to Innovation House in the Sandyford Industrial Estate. The experience to date has been extremely positive, with significant cost reductions achieved and the new premises seen to positively reflect on a progressive and determined organisation. The NDC was also pleased to welcome Connacht Gold among its member dairies, following its decision to rejoin fully in 2010. At the beginning of 2010, the Board elections took place. There was a high level of interest in participation, which has been further reflected in the expert contribution of Board members since then. Milk It For All It’s Worth A three-year programme targeting the 11-to-20-year-old age group and young women (20 to 35 years), Milk It For All It’s Worth is designed to build the association between milk, dairy and sport. The first phase of the programme was officially
Dairy: Food for Life Annual Report 2010
launched in October 2010 and, in a six-month period, saw over €230,000 in direct media spend through radio and national print, as well as digital online advertising on MSN, YouTube and Facebook. The youth-oriented www.milkitforallitsworth.ie website is also an important component in this strategy. International soccer player Kevin Doyle was chosen as the first ambassador of the programme. Milk It For All It’s Worth is a multi-state project, with the NDC acting as lead project partner, and also involving the Dairy Council for Northern Ireland and The Dairy Council (GB). This campaign involved a media event at Wimbledon, a venue not normally open to the public, at which Irish and UK health and fitness writers were addressed by a number of academics in the field of sports nutrition, including Prof. Ron Maughan, Professor of Sport and Exercise Nutrition at Loughborough University, and Wendy Martinson, formerly Consultant Sports Nutritionist to the British Olympic Association and now heavily involved in a range of sports, including Lead Nutritionist for the Great Britain Rowing Team. As part of the programme, the NDC organised a seminar for fitness professionals at The Helix at DCU, which was chaired by Prof. Moira O’Brien, President of the IOS. Fitness professionals, sports coaches, trainers, dietitians and other heath professionals were among those attending, with regional seminars specific to trainers and coaches to follow in 2011. In 2011, the publication of two information guides, the first for the 11-to-20-year-old
age group and the second specifically for women in the 20-to35-year-old age group will further support the goals of the Milk It For All It’s Worth programme, as will the introduction of a newsletter for sports professionals, the first of which was published in February 2011. Distribution of information guides for the 20-35 year old age-group will be supported through a series of osteoporosis awareness seminars taking place nationwide over the course of the three-year period. Conclusion As an advocacy organisation, the NDC is undoubtedly one that punches above its weight. It is also one that has demonstrated the value of setting out a clear strategic vision and gaining the commitment and buy-in of the board, staff and other stakeholders. Having gained the trust and confidence of both the farming community, on behalf of whom it works, and the public, who are its audience, the NDC will continue to be an organisation driven by the common goal of excellence in all its undertakings.
Zoë Kavanagh Chief Executive The National Dairy Council
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Dairy: Food for Life Annual Report 2010
2010 in Review Irish Cheddar - Goodness in every bite
visit cheesymoments.ie NDC Cheese Anabelle 48sht FA.indd 1
27/08/2010 11:54:30
Amy Lee, St John’s National School, Sligo celebrating World School Milk Day in September 2010. Photo: Colin Gillen.
Celebrating Perfect Pancakes 2010 with TV and radio presenter Ryan Tubridy and friends are (l-r) Helen Brophy, former CEO, NDC; Dominic Cronin, Chairman, NDC and Niall McLoughlin, CEO, Irish Osteoporosis Society. Photo: Marc O’Sullivan.
NDC & FAI Futsal Champions Drimnagh Castle School (from left) Alan Swan (Snr Pupil Coach), Tara Regan (National Dairy Council) with the celebrating winning team, Mark Mitchell, Daniel Peppard, Kenneth Caulfield, Karl Malone and Adam O’Connor and (right) Derek O’Neill, National Futsal Co-ordinator, FAI. Photo: Fennells Photography. At the sports nutrition seminar at the All England Lawn Tennis Club in Wimbledon are (from left) Dr. Catherine Logan, Nutrition Manager, NDC; tennis star Tom Farquharson; Prof. Ron Maughan, School of Sport, Exercise & Health Sciences, Loughborough University; and Dominic Cronin, Chairman, NDC. Photo: Vismedia.
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Irish international soccer star Kevin Doyle joined the NDC at the 2010 National Ploughing Championships to support the Milk It For All It's Worth campaign. Kevin is pictred here with Evan Hales, aged nine, from Mullingar. Photo: Dylan Vaughan
Kevin and John Walsh, winners of the National Dairy Council Quality Milk Awards 2010 are pictured on their farm with their mother Catherine and sister Teresa. Photo: Leo Murphy, Waterford.
Dairy: Food for Life Annual Report 2010
THE NATIONAL DAIRY COUNCIL (A company limited by guarantee & not having a share capital)
REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2010
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Dairy: Food for Life Annual Report 2010
The National Dairy Council Directors’ Report The board of directors submit their annual report and the financial statements for the year ended 31 December 2010. 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. PRINCIPAL ACTIVITIES 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. RESULTS The results for the year and the state of affairs of the company are set out on pages 15 and 16 respectively. 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 The NDC has a vital role in supporting the dairy sector in 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 Mr. D. Cronin (Chairman) Mr. H. Corbally (Vice Chairman) Mr. E. Bray Mr. J. Cahill Mr. J. Egan Mrs. M. Fox Mr. P. Kelly
Mr. K. Kiersey Mr. S. McAuliffe Mr. C. Ryan Mr. F. Tobin Mr. P. Gibbons (appointed 21 April 2010) Mr. T. Maher (appointed 21 April 2010) Mr. T. Phelan (appointed 21 April 2010)
Mr. S. Shorten (appointed 21 April 2010) Mr. T. Corcoran (resigned 21 April 2010) Mr. S. Griffin (resigned 21 April 2010) Mr. R. Kennedy (resigned 21 April 2010) Mrs. M. Purcell (resigned 21 April 2010)
BOOKS OF ACCOUNT 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. EVENTS AFTER THE BALANCE SHEET DATE There have been no significant events affecting the financial statements since the year end. 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:
DIRECTORS Date: 30 March, 2011
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Dairy: Food for Life Annual Report 2010
The National Dairy Council 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.
Independent Auditors’ Report to the Members of The National Dairy Council 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 2010 which comprise the Income and Expenditure Account, the Balance Sheet, the Cashflow 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 auditor’s 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. 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.
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Dairy: Food for Life Annual Report 2010
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. 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 2010 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.
Deloitte & Touche Chartered Accountants and Registered Auditors Dublin Date: 30 March, 2011
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Dairy: Food for Life Annual Report 2010
The National Dairy Council Income and expenditure account For the year ended 31 December, 2010
2010 €
2009 €
Notes
Income 1
2,445,027 2,221,690
Expenditure Direct expenses 2,769,533 Establishment expenses 156,894 Administrative expenses 252,080 Total expenses 3,178,507
2,837,551 127,302 198,517 3,163,370
Deficit on ordinary activities before taxation 2 (733,480) (941,680)
Taxation 4 (7,195) Deficit on ordinary activities after taxation (740,675)
(16,744) (958,424)
Opening accumulated surplus
2,340,715
Deficit on ordinary activities after taxation (740,675) Retained accumulated surplus carried forward 9 1,600,040
3,299,139 (958,424) 2,340,715
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.
The financial statements were approved by the Board of Directors on 30 March, 2011 and signed on its behalf by:
DIRECTORS
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Dairy: Food for Life Annual Report 2010
The National Dairy Council Balance sheet As at 31 December, 2010 2010 Notes €
2009 €
FIXED ASSETS Tangible assets 5
28,057
50,339
Debtors 6 Bank
349,498 1,550,326
303,320 2,382,685
1,899,824
2,686,005
CREDITORS: (Amounts falling due within one year) 7
(327,841)
(395,629)
NET CURRENT ASSETS
1,571,983
2,290,376
TOTAL NET ASSETS
1,600,040
2,340,715
1,600,040
2,340,715
CURRENT ASSETS
Represented by: ACCUMULATED SURPLUS 9
The financial statements were approved by the Board of Directors on 30 March, 2011 and signed on its behalf by:
DIRECTORS
16
Dairy: Food for Life Annual Report 2010
The National Dairy Council Cashflow statement For the Year Ended 31 December, 2010 2010 Notes €
2009 €
Reconciliation of operating deficit to net cash outflow from operating activities Operating deficit Less: interest income Depreciation Loss on disposal of fixed assets Increase in debtors (Decrease)/increase in creditors
(733,480) (28,782) 31,485 76 (45,805) (67,172)
(941,680) (66,975) 33,002 – (65,232) 241,797
Net cash outflow from operating activities
(843,678)
(799,088)
28,782
66,975
Taxation paid (8,184)
(19,085)
Returns on investment and servicing of finance Interest income Taxation
Financing activities Payments to acquire fixed assets
(9,369)
(1,460)
Receipts from sale of fixed assets
90
–
(832,359)
(752,658)
Decrease in cash position for the year 10
17
Dairy: Food for Life Annual Report 2010
The National Dairy Council Notes to the financial statements For the year ended 31 December, 2010 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. 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 20% per annum Office equipment 25% per annum Computer equipment 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.
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
18
2010 €
2009 €
45,000 24,178 11,000 31,485 3,780 76
25,000 23,904 11,000 33,002 3,780 –
Dairy: Food for Life Annual Report 2010
The National Dairy Council Notes to the financial statements For the year ended 31 December, 2010 3.
EMPLOYEES
2010 €
2009 €
Wages and salaries Social Welfare costs Pension
428,132 43,065 30,986
372,547 37,791 29,434
502,183
439,772
The average number of employees for the year was 8 (2009: 7).
The number of employees at the year ended 31 December 2010, including eleven directors, was 17 (2009: 7).
4. TAXATION The company is not liable to corporation taxation on the excess of its income over its expenditure. Corporation tax was incurred on interest earned as follows: 2010 €
Corporation tax @ 25%
TANGIBLE ASSETS Computer Office equipment equipment € €
16,744
7,195
5.
Motor vehicles Total € €
Cost: At 1 January, 2010 Additions Disposals
41,082 4,595 -
36,213 4,774 (334)
68,381 - -
145,676 9,369 (334)
At 31 December, 2010
45,677
40,653
68,381
154,711
Depreciation: At 1 January, 2010 27,974 18,982 48,381 Charge for the year 11,322 10,163 10,000 Disposals - (168) -
2009 €
At 31 December, 2010
39,296 28,977 58,381 Net book value: At 31 December, 2010 6,381 11,676 10,000
At 1 January, 2010
13,108
17,231
20,000
95,337 31,485 (168) 126,654 28,057 50,339
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Dairy: Food for Life Annual Report 2010
The National Dairy Council Notes to the financial statements (continued) For the year ended 31 December, 2010 6.
DEBTORS: (Amounts falling due within one year)
2010 €
2009 €
Other debtors VAT recoverable Corporation tax
119,913 229,212 373
80,689 222,631 -
349,498
303,320
7. CREDITORS: (Amounts falling due within one year) 2010 €
Trade creditors Corporation tax Accruals and sundry creditors PAYE/PRSI
238,203 - 60,604 29,034
350,740 616 31,080 13,193
327,841
395,629
8.
20
2009 €
PENSION The company operates a defined contribution pension scheme. Contributions payable in respect of the year ended 31 December 2010 amounted to €30,986 (2009: €29,434). There were no pension contributions outstanding at the year end (2009: €Nil).
9. ACCUMULATED SURPLUS Accumulated surplus at the beginning of the year Deficit for the year
2010 €
2009 €
2,340,715 (740,675)
3,299,139 (958,424)
Accumulated surplus at the end of the year
1,600,040
2,340,715
Dairy: Food for Life Annual Report 2010
The National Dairy Council Notes to the financial statements (continued) For the year ended 31 December, 2010 10. ANALYSIS OF CHANGES IN NET FUNDS Opening balance € Cash at bank and in hand
2,382,685
Cashflow €
Closing balance €
(832,359)
1,550,326
11. OPERATING LEASES The company had annual commitments under non-cancellable operating leases, these leases were due to expire as follows: 2010 2009 € € Between two and five years – office equipment 1,380 2,600
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 €1,804,104 (2009: €1,597,174). The total expenses claimed by these directors for the year ended 31 December 2010 amounted to €10,037 (2009: €9,780). The directors held 7 meetings during the year ended 31 December 2010 (2009: 6 meetings).
13: APPROVAL OF FINANCIAL STATEMENTS The financial statements were approved by the Board of Directors on 30 March, 2011.
21
Report 2010 & 2011 Plan Dairy: Food for Life Annual Review Eamonn Bray (National Milk Agency)
Jackie Cahill (ICMSA)
John Egan (Kerry Group)
Mary Fox (Connacht Gold)
Dominic Cronin Chairman (ICMSA)
Kevin Kiersey (IFA)
Tim Maher Sean McAuliffe (Centenary (North Cork Thurles Co-op) Co-op)
NDC Board December 2010
Patrick Kelly (Donegal Creameries)
Henry Corbally Vice-Chairman (Glanbia)
Padraig Gibbons (ICOS)
Tom Phelan (IFA)
Conor Ryan Stephen Shorten Frank Tobin (Arrabawn (Bandon (Glanbia) Co-op) Co-op)
22 28
Eamonn Bray
James Burke (MD, James Burke & Associates)
Ciaran Fitzgerald (MD, Ciaran Fitgerald Consulting) Mary Fox
Dominic Cronin Chairman
Patrick Kelly
December 2010
Marketing & Communications
NDC Board Sub-Committee
Prof. Damien McLoughlin (Director - Mktg Development Prog.,UCD Michael Smurfit Graduate Business School)
Stephen Shorten
Frank Tobin
Dairy: Food for Life Annual Report 2010
29
23
Dairy: Food for Life Annual Review 2010 & 2011 Plan Dairy: Food for Life Annual Report 2010
Eamonn Bray
Tom Corkery (Milk Policy Division, Dept of Agriculture, Fisheries & Food)
Mary Fox
Noel Mooney (Head of League Marketing & Promotion, Football Association of Ireland)
NDC Board Sub-Committee School Milk & Dairy December 2010
Dominic Cronin Chairman
George Kearns (Secretary, National Dairies Association)
Conor Ryan
Frank Tobin
24 30
Dairy: Food for Life Annual Review 2010 & 2011 Plan
Jackie Cahill
Dominic Cronin
Dr. Pat Dillon (Head of Animal & Grassland Research and Innovation Programme, Teagasc Moorpark)
Padraig Gibbons
Ciaran Fitzgerald (MD, Ciaran Fitzgerald Consulting)
Kevin Kiersey
Henry Corbally Chairman
December 2010
Fiona Lalor (Research Asst., School of Public Health & Population Science, UCD)
Sean McAuliffe
Issues Management & Nutrition
NDC Board Sub-Committee
Henry Corbally Chairman
December 2010
Accountability & Corporate Governance
NDC Board Sub-Committee
Catherine Lascurettes (Executive Secretary, IFA)
32 Paula Mee (MD, Paula Mee Nutrition Consulting)
Dairy: Food for Life Annual Report 2010
25
Dairy: Food for Life Annual Report 2010
Dairy: Food for Life Annual Review 2010 & 2011 Plan
National Dairy Council Staff Organisational Chart December 2010
ZoĂŤ Kavanagh Chief Executive
Lynda Thompson PA to Chief Executive
Dr. Catherine Logan Nutrition Manager
Tara Regan School Programme & Special Projects Manager
Joe Podesta Marketing & Promotions
Caroline O’Donovan Nutritionist
26
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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