The National Dairy Council Annual Report 2014
The National Dairy Council Innovation House 3 Arkle Road Sandyford Dublin 18 Ireland t +353 (0)1 290 2451 f +353 (0)1 290 2452 e info@ndc.ie www.ndc.ie
Annual Report 2014
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Chairman’s Statement
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CEO’s Statement
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On Track to the Future
8 Promoting Irish Dairy Excellence 8 NDC and Kerrygold Quality Milk Awards 10 Irish Dairy: It All Starts Here 10 Ploughing Championships 11 NDC Market Impact 11 NDC Guarantee 12 Second NDC National Dairy Week 14 Milk - A Force of Nature Advertising Campaign 14 Dairy in Main Stream and Social Media 15 Building and Maintaining Industry Reputation 16 NDC Annual Conference 17 Health and Wellbeing Evenings 18 Promoting the Versatility of Cheese 19 Scientific Expertise at the Heart of Communications on Dairy Nutrition 19 Symposium for Dietitians on Nutrition and Healthy Ageing 21 Dairy Research 21 Milk, Nutritious by Nature 23 Dairy Education for Schools Continues to Thrive 23 Programmes for Primary Schools – Moo Crew 24 Programme for Second Level Schools – Milk It Awards 25 Looking Forward to a New Era in Dairy
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NDC Reports and Financial Statements for the year ended 31 December 2014
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A Thank You to our Member Co-ops
The National Dairy Council
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Chairman’s Statement
2014 saw the National Dairy Council (NDC) celebrate its 50th anniversary. In 1964 Ireland was on the cusp of change, both social and economic. Entry to what was then known as the Common Market was still seven years away. While economic activity was expanding slowly, farmers’ incomes were very low. The role of the NDC in 1964 (and today) was to support the dairy sector by promoting the positive values of milk and dairy products. The, as now, they represent an important part of the traditional Irish diet and the NDC was and is at the forefront of promoting their value to Irish consumers. Once again, we are on the cusp of change. Economic recovery is slow but steady. With the ending of the quota system in 2015, we are at the beginning of a new era for the dairy sector. A 50% increase in milk productivity is envisaged in the Food Harvest 2020 strategy. The NDC fully intends to play its part in helping to unlock dairy’s potential. As Mr. Tom Hayes T.D., Minister of State at the Department of Agriculture, Food & the Marine said at the NDC Annual Conference this year, for the first time ever, Irish dairy exports exceeded €3 billion in value in 2013. Economists estimate if the dairy sector reaches it potential, it could be worth €1.3 billion per year to our economy with the potential to create 15,000 jobs. The key to unlocking that potential is to build on our core strengths: our sustainable, pasturebased system of farming, our quality assurance
systems and the naturally nutritious nature of dairy products. Added to that, we must capitalise on dairy innovation built on the twin pillars of understanding and exceeding consumer needs and utilising the best available scientific expertise to create new applications for dairy in such growing areas as sports and healthy ageing. Ensuring that the NDC plays a pivotal role in this quest to maximise the potential of the industry underpins the objectives that we set ourselves in our Strategic Plan 2013-2015. At the mid-way point at the end of 2014, as will be seen in this Annual Report, we can demonstrate progress in all four priority areas: 1. 2. 3. 4.
Irish Dairy Excellence Industry Reputation Dairy Nutrition and Scientific Expertise Dairy Education in Schools
Promoting and celebrating Irish dairy excellence through the NDC & Kerrygold Quality Milk Awards puts the focus on the hard work, dedication and professionalism of our family-run farms throughout the country. Once again this year, the distinguished panel of judges commented on the high, consistent quality standards maintained in all aspects of farm management in so many of the entries they reviewed. The dairy industry’s reputation at home and abroad will be critical to future success. During the year, the NDC began a process of consultation
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with stakeholders on the optimum way to maintain and grow our reputation as we enter a period of expansion and change. A key topic is how the industry should position itself in the future. It is prudent at this time to ensure that we fully understand the current reputation of the industry and are aware of any potential risks it may encounter. Protecting and enhancing our reputation is one of our priority areas in our strategy. Creating a desired future reputation is part of this process which will unfold in the coming year. On the EU and global front during 2014 the NDC played its part as a member of the International Dairy Federation, Global Dairy Platform and the Utrecht Group. The NDC is a founding member of the European Milk Forum (EMF) and continues to be highly involved. It supports its Milk, Nutritious by Nature Campaign -a science-based programme which aims to disseminate pertinent information and create a true dialogue with key stakeholders in Europe in relation to the nutrient richness of milk and dairy. For the second year, the NDC rolled out the EMF’s Milk a Force of Nature advertising campaign, adapted for an Irish audience. The Farmed & Processed in the Republic of Ireland NDC Guarantee on pack continued to be supported by the NDC during 2014. It is granted under licence – backed up by an audit process to ensure compliance - on the basis that the milk and cream is both farmed and processed in the Republic of Ireland. The Guarantee gives consumers the choice – which research shows they want - to support local, sustainable jobs. The NDC Guarantee directly supports the jobs of 2,483 people locally in dairies and 2,193 dairy farmers. The actual economic value is much higher than this, as the economic multiplier effect associated with the agri-food sector means that consumers who choose milk and cream with the NDC Guarantee are in fact supporting 12,415 jobs in our economy. An important part of the NDC‘s work is to monitor relevant regulatory affairs and guidance from authorities to ensure communications to the various audiences are in line with regulatory requirements and best-practice. Led by Dr.
Catherine Logan, the nutrition team were proactive in this work during the year, providing a valuable service to the industry at all levels. The team also ensures that the communications to consumers about the nutritional benefits of dairy as part of a balanced diet and healthy lifestyle are based on solid scientific evidence. Engaging the younger generation in learning about ‘all things dairy’ is another priority area for the NDC. Working directly with schools at primary and second level, the NDC’s engaging and imaginative programmes resonate with young people as the increased level of participation by schools in our school-based programmes. Taken together, these four elements of our strategy, have worked well during 2014 to engage all our stakeholders and our partners in different ways and at different levels. This has allowed us to pursue our overall aim which is to showcase the quality, versatility and excellence of our dairy products in appropriate ways and to show that Irish dairy is sustainable and nutritious by nature. As our 50th anniversary celebrations draw to a close, we look forward to the support of the dairy sector for our work in the coming years. The context for that work has changed dramatically over that time. Like the farmers and producers at the heart of our industry, the NDC must be agile in adapting to the opportunities – and no doubt – challenges that will arise. The future for the dairy industry, 50 years on from where we started, looks bright. If we build on what makes us unique – our sustainable, pasture-based system of family-run farms and use science-based innovation to produce dairy products that consumers want and value, then future success is within our grasp. I wish to thank my colleagues on the Board for their work during the year. I would also like to thank Zoë Kavanagh, our CEO, and her hardworking team. They have used the resources available to them during 2014 to great effect in the programmes and initiatives outlined further in this report. Jackie Cahill Chairman
The National Dairy Council
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CEO’s Statement
Celebrating Irish dairy excellence is a core value for the NDC. Based as it is on our pasture-based system of farming, the NDC & Kerrygold Quality Milk Awards provide an opportunity to appreciate and reward farming families who maintain consistent, quality standards on all aspects of farm management. Edmund and Thomas Dwan from Co. Tipperary were awarded the overall national prize for 2014. The father and son team milk 105 cows on a 75-hectare farm on the outskirts of Thurles town. All of the milk from the farm goes to Centenary Thurles Co-op. Maintaining and strengthening our reputation for excellence and promoting our ‘green’ credentials are essential elements in the continued success of our dairy sector which is set to grow and develop substantially with the ending of the quota system in 2015. Of equal importance is the way that we communicate the nutritional benefits of dairy for the various life-stages. The NDC nutrition team, led by Dr. Catherine Logan, draws on evidence-based information and applies regulatory guidance in the development of NDC communications to consumers as well as to other audiences such as health professionals and sports nutritionists. A key aspect of our work is to find engaging, relevant and impactful ways to tell our stakeholders about the benefits of dairy, its versatility and its value for money. National Dairy Week, inaugurated
in 2013, has proved to once again be a successful way to do this work. Organised in association with our partners SuperValu, there was a wide range of activities celebrating the natural goodness and versatility of dairy from farm to fridge during the week. New activities in year two included workshops at Family Farm, a programme for primary school children developed by Agri Aware and Dublin Zoo. A new multi-media advertising campaign - It All Starts Here - was launched in May at the start of National Dairy Week. It features professional Irish rugby icons Rob and Dave Kearney. The role of dairy in sports nutrition is a particular area that the NDC activity promotes so the campaign works on different levels for different audiences. The TV advertising campaign continued throughout the year. The annual visit by the NDC to the National Ploughing Championships took place in September in Co. Laois. The event provides a significant opportunity to encourage consumers to find out more about the versatility of dairy and how it can be used in so many ways as part of a balanced diet. Visitors get to meet well-known TV personalities and sports stars, attend cookery demonstrations, and enter competitions in a fun and engaging way.
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World School Milk Day on 24th September was celebrated at the event again this year. It provided a platform for the NDC to highlight its role in the School Milk Scheme. National surveys have indicated that significant percentages of schoolaged children and teenagers have inadequate calcium intakes. As milk is among the best dietary sources of calcium, the scheme administered by the NDC may play an important role in helping to address this issue as do our direct education programmes for schools Our school-based programmes for both primary and second level schools continued throughout the year. The primary school programme, Moo Crew: The Primary Dairy Moovement, which began last year, saw a 100% increased participation by schools through the country. The winning project from 3rd and 4th class in Ballaghlea National School, entitled Our Moo-ving Experience was praised by the judges for its excellence, particularly as they ensured that the clear messages they developed reached all the pupils in their school. The NDC Milk It Awards for secondary school students is now in its fourth year. The project involves a team-based challenge to create an advertising agency and original concepts for television adverts promoting the benefits of dairy to teenagers. Twenty teams of finalists were shortlisted from 358 entries for the final which took place in front of an expert panel of judges during Dairy Week. Transition Year students from Árdscoil Na Tríonóide, Rathstewart, Athy, Co. Kildare – Ellen Purcell, Eadaoin Burgess, Clodagh Walsh, Emma Owens, Anna Cully, Adam Ryan (Teacher: Jacqueline Cooper) took the coveted overall prize with their entry ’ ‘sMOOlicious’. This year, an exciting additional feature for the winning team was a day at TV3/3e studios where the winning idea was transformed into a TV advert. This went out on air on TV3 and 3e during September. In addition to its work directly with consumers, the NDC also works in partnership with the Irish Nutrition and Dietetic Institute (INDI) and other health and food professionals. During 2014, the NDC and the INDI co-hosted a symposium on Healthy Ageing: The Nutritional Challenges. This sought to explore and discuss the nutritional challenges facing an ageing population. This is
never more important considering the trends in population ageing at a global and national level. Science-based evidence can inform the NDC and its stakeholders so that they are in a position to meet specific nutrition and health needs associated with ageing and older age. Similarly, there is a growing interest in the science behind sports nutrition and the application of dairy products and dairy components, for example, in relation to milk and rehydration after training. The NDC works actively with sports nutritionists on these issues in a proactive way. At the NDC Annual Conference this year, with the theme of Irish Dairy: Post Quota Drivers of Growth heard about the three mega trends that are facing the industry that will bring both challenges and opportunities for the industry. These include the demand for high value food products, including dairy, in the emerging markets of Africa, Asia and South America; research and innovation to identify new applications for dairy, for example in the areas of sports nutrition and healthy ageing; and consumer demands for both quality and sustainability in the products they purchase and use. Ireland is well-placed to address these trends, with sales of dairy products topping the €3 billion mark in 2013. Irish dairy has the potential to create 15,000 jobs in Ireland in the coming years, economists estimate. To unlock that potential, it has to be nimble, flexible and ‘ahead of the curve’. In particular, it has to make the most productive use of our pasture-based, natural resources in a sustainable manner so that the consumers, on whom the industry depends, continue to have confidence that quality, versatile dairy products are indeed nutritious by nature. During 2015, as we prepare for the coming momentous changes in the dairy sector, the NDC is well placed to engage with Irish consumers, health professionals and other stakeholders on the benefits of dairy as part of a balanced diet and a healthy lifestyle. In this way, we play our part in unlocking the potential of dairy to the industry and the Irish economy as a whole. Zoë Kavanagh Chief Executive
The National Dairy Council
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On Track to the Future
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In our most recent Strategic Plan Irish Dairy – Sustainable by Nature NDC Strategy 2013-2015, the NDC set out four priority areas for its work during this period. 2014 marks the midway point of the plan. This report sets out the main achievements during the year under each of these strands. Ensuring that the core attributes of Irish dairy – nourishment, sustainability and quality assurance – underpinned our activities and communications to our stakeholders was a key focus during 2014: they provide the basis to convey what is really unique about our dairy products.
International rugby icons and NDC Ambassadors, Rob Kearney and Dave Kearney. Photo: Patrick Bolger
1. Irish Dairy Excellence – Promoting quality, sustainability and excellence of the dairy sector and dairy produce to a consumer audience, from farm to plate. 2. Industry Reputation – Promoting and enhancing the status and reputation of the Irish dairy category with key audiences/ stakeholders. 3. Dairy Nutrition & Scientific Expertise – Maintaining and building our position as experts in dairy nutrition and at the forefront of science. 4. Dairy Education for Schools – Improving attitudes, relevance and consumption of milk and dairy produce for school-going children and young people.
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Promoting Irish Dairy Excellence NDC and Kerrygold Quality Milk Awards Family-run, pasture-based, sustainable dairy farms produce quality assured milk generation after generation. The annual NDC & Kerrygold Quality Milk Awards highlights and rewards high standards on Irish dairy farms with particular attention to sustainability, care of the environment, animal welfare and the quality of the milk. Known as ‘The Sam Maguire of Farming,’ it also provides participating co-ops with role models at farm level and an opportunity to showcase dairy farming excellence to consumers. The world class quality milk our dairy farmers produce every day ensures that the dairy products marketed at home and all around the world meet the high standards customers and consumers expect and enjoy. Fifteen dairy farms in seven counties were shortlisted as national finalists. The judging panel of Professor Patrick Wall, Associate Professor of Public Health at UCD; Dr. David Gleeson, Milk Quality Research, Teagasc; and Dr. Jack Kennedy, Dairy Editor, Irish Farmers Journal, examined detailed technical data about each farm and then visited each of the shortlisted finalists as part of the process of choosing the awards winners. They assessed milk quality records for over twelve months along with information about milking practices and facilities, care of the environment, sustainable practices, dairy herd health, animal welfare and general farm management. The judges noted that the quality results being achieved by all of the finalists were outstanding, with cleanliness, milk recording and a consistently good routine that is not rushed at the very heart of their work.
With the expected dairy expansion over the next five years, there is a tremendous opportunity for the Irish dairy sector. Dairy farm families with sustainable and efficient expansion, supported by pasture based farming practices will be at the forefront of these developments. Edmund and Thomas Dwan from Co. Tipperary were awarded the overall national prize. The father and son team milk 105 cows on a 75-hectare farm on the outskirts of Thurles town. All of the milk from the farm goes to Centenary Thurles Co-op. Edmund took over the farm from his parents, while Thomas, aged 26, is the fourth generation farming the land at Bohernamona. The duo is supported by Edmund’s wife Ann who is from a farming background herself. They were presented with the prestigious NDC & Kerrygold Quality Milk Awards perpetual cup and the prize of €5,000 at the national awards ceremony in Dublin by ten-time All-Ireland hurling champion Henry Shefflin from Kilkenny.
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Seven national category prizes were awarded to:
Six national finalists were also commemorated at the awards ceremony
PJ & Bernie Boylan, Drumboat, Inniskeen, Co. Monaghan (Glanbia/GII) – for Excellence in Winter Milk
Anthony & Mary Beechinor, Kilmoylerane, Ballinascarthy, Co. Cork (Lisavaird Co-op)
Cathal Lowry & Sylvia Burke, Brooklawn, Gurtymadden, Loughrea, Co. Galway (Aurivo Co-op) – for Excellence in Milk Protein
Benny & Mary Cottrell & family, Dromkeen, Innishannon, Co. Cork (Bandon Co-op)
Eugene M. & Eugene O. Lyons, Clonmoyle, Aghabullogue, Co. Cork (Dairygold Co-op) – for Excellence in Milk Quality Declan & Eileen Murphy & family, Newpark, Effin, Killmallock, Co. Limerick (Kerry Agribusiness) - Highly Commended Family Farm
Michéal Crowe & family, Parkroe, Cappawhite, Co. Tipperary (Tipperary Co-op) James & Theresa Luttrell & family, Poulacapple, Callan, Co. Kilkenny (Callan Co-op) Gerald & Michael O’Connell & family, Hazelfield, Askeaton, Co. Limerick (Kerry Co-op)
Helen & Caroline O’Donovan, Brownstown, Ballinspittle, Kinsale, Co. Cork (Barryroe Co-op) – for Excellence in Milk Quality
Donal & Carmel O’Connor, Reavouler, Drinagh, Co.Cork, (Drinagh Co-op)
Aidan & Mary Reardon, Ballinboy, Ballinhassig, Co. Cork (Dairygold Co-op) – for Excellence in Milk Quality
Eoin Toohey, Cullenwaine, Cloughjordan, Co. Tipperary, (Arrabawn Co-op)
James & Andrew Walsh, Island Farm, Kilmuckridge, Gorey, Co. Wexford (Glanbia Inch/GII) – for Excellence in Milk Quality
Edmund, Thomas and Ann Dwan from Bohernabreena, Thurles, Co. Tipperary – worthy winners of the NDC & Kerrygold Quality Milk Awards 2014 Photo: Dylan Vaughan
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Irish Dairy: It All Starts Here A new multi-media advertising campaign It All Starts Here was launched in May at the start of National Dairy Week and ran throughout the year. It features professional Irish rugby icons Rob and Dave Kearney. It aims to promote the image, quality, taste and nutritional credentials of Irish dairy and promotes the full spectrum of dairy produce. The campaign also ties in with the NDC’s strong interest in promoting the positive role that milk can play in sports nutrition. The TV Campaign was launched in May and ran throughout the year.
Rugby professionals and NDC Ambassadors Rob Kearney and Dave Kearney acted as judges for the ‘unique, colourful or characterful wellies’ as part of an NDC Welly Line Out. Broadcaster and designer Brendan Courtney launched two new NDC consumer booklets, developed by the NDC Nutrition team entitled: Nutrition & You: Adults and Nutrition & You: Children aged 5 years and up. Brendan chatted live with Dr. Catherine Logan, Nutrition Manager, NDC about being the Best Version of You with guidance on healthy eating, activity, grooming, fashion and communication.
Ploughing Championships Celebrating its 50th Anniversary, the National Dairy Council had a spotlight on nutrition and wellbeing at this year’s National Ploughing Championships in September at Ratheniska, Co. Laois. Consumer engagement is a key part of what the NDC offers at the event with opportunities for the public to meet well-known sports and TV celebrities and to learn about the benefits of dairy as part of a balanced diet and healthy lifestyle.
Rob and Dave Kearney pictured with winners of the NDC Welly Line Out competition at the National Ploughing Championships in 2014. Photo: Patrick Bolger
Eight-time All-Ireland hurling Champion Eddie Brennan was on hand to greet fans and to support the NDC’s work in promoting the positive role that milk and dairy may play in a number of aspects of sports nutrition.
Brendan Courtney helps to launch two NDC consumer booklets at the Ploughing – pictured here with NDC Nutrition Manager, Dr. Catherine Logan. Photo: Dylan Vaughan
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NDC Marketing Impact HK (1.48m)
TV reached a whopping 3.1m adults & 93% of Mums over campaign
TVRs
%
%
Unvi 1+ reach
1+ Cov 4+ Cov HK+CH (499k)
Ads15+ (3.01m)
AdsF1F2 (220k)
000s
Hk+Ch 1441 92.6 78.4 539
499
Hk
1812 93.1 82.3 1587
1477
Ads 15+
1457
AdsABC1 1134
88.3
73.1 3409
3010
86.7
70.4 1391
1206
F1F2 1544 95.5 72.5 230
220
AdsABC1 (1.21m)
Food and farming broadcaster Suzanne Campbell talked about the diversity and flavour of Irish dairy produce while Chef Phelim Byrne gave cookery demonstrations showing the many versatile ways we can enjoy Irish milk, yogurt, cheese, butter and cream in our diet. A team of TY students from Árdscoil Na Tríonóide, Rathstewart, Athy, Co. Kildare who won the top prize in the National Dairy Council’s Milk It Awards in May 2014, visited the NDC Dome during the event. TV3’s Ireland:AM broadcast from the NDC Dome on Day 2 reaching over quarter of a million impacts.
NDC CEO, Zoë Kavanagh, pictured with Simon Coveney TD, Minister for Agriculture, Food and the Marine, celebrating the NDC’s 50th Anniversary Year at the National Ploughing Championships, Co. Laois. Photo: Dylan Vaughan
NDC Guarantee The NDC continued to support the NDC Guarantee through targeted advertising during 2014. The onpack rosette emblem identifies that the cream and milk products consumers choose have been both farmed and processed in the Republic of Ireland. This gives consumers the opportunity to show their support for local jobs on dairy farms and in the dairy sector, when deciding what milk or cream to buy. Research shows that 31% of consumers are saying they are buying more Irish food and drink brands, and, when asked why 90% are saying that want to support the economy and jobs. The NDC Guarantee directly supports the jobs of 2,483 people locally in dairies and 2,193 dairy farmers.
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Second NDC National Dairy Week Now in its second year the NDC’s National Dairy Week is a celebration of the natural goodness of Irish dairy. It was organised this year in association with SuperValu. National Dairy Week aims to showcase the excellence of our pasture-based dairy farming and produce – from farm to fridge. Through a campaign of consumer promotion in mainstream and social media and in SuperValu stores, the quality, versatility and nutritious benefits of dairy as part of a healthy, balanced diet were highlighted.
NDC ambassadors and professional rugby icons Rob & Dave Kearney joined the NDC at the launch of the week. Building on the success of the inaugural National Dairy Week last year, new elements to the programme this year include workshops for primary schools organised by Agri Aware at the Family Farm in Dublin Zoo, a Macra na Feirme ‘DairyFest’ in Dublin city centre and a Teagasc Farm Walk, on the dairy farm of the 2013 winners of the NDC & Kerrygold Quality Milk Awards. The week’s activities brings together many of the strands of the NDC’s work, including promotion of dairy excellence, its work on promoting the science behind the nutritional benefits of dairy, its work in dairy education and its role in building and safeguarding industry reputations.
Highlights of National Dairy Week 2014 –
The NDC Annual Conference for the dairy industry took place on Wednesday 14th May in Dublin’s RDS.
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From Farm to Fridge’ workshops for primary schools were hosted by Agri Aware at the Family Farm, developed by Agri Aware and Dublin Zoo.
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Primary school children took part in the NDC’s Moo Crew: The Primary Dairy Moovement competition throughout the week in participating classrooms (www.moocrew.ie).
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The national finals of the NDC Milk It Advertising Awards took place with twenty teams from all over Ireland participating.
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Macra na Feirme brought some young farmers to South King Street, Dublin city centre for a ‘DairyFest’.
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A specialist symposium for dietitians organised by the Irish Nutrition & Dietetic Institute (INDI) and the NDC took place in Dublin’s Clyde Court Hotel. It put the focus on dairy protein and healthy ageing.
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Teagasc organised a Farm Walk on the dairy farm of Edward and Olivia Fitzgerald, 2013 national winners of the NDC & Kerrygold Quality Milk Awards.
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National Dairy Week 2014 Campaign Reach Independent research shows that the multi-media campaign was very effective in reaching our core audiences:
An est 848k Hkprs and a whopping 1.57 million ads saw our message on average 12.9 times
2.4 million
TV
Promotional Support reaching 238,500 main shoppers hearing our message 11.6 times
238,500
Radio
1.4 million
Over 300,000 copies of The Good Life magazine issued reaching an est 903k ads and half a million Hkprs (25%) Press
A total no of 1.6 million page impressions were delivered over the week with 2,205 consumer engagements achieved
1.6 million
Digital
A total of 7.9 million page impressions of Dairy Week social ads were delivered. A whopping 12,173 engagements achieved.
12,173
Social
68%
Agri Print delivered reached 68% of the Agri Community on average 4.2 times, along with 340k main shoppers seeing our message.
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Milk - A Force of Nature Advertising Campaign 2014 was year two of Milk a Force of Nature press and TV campaign. It seeks to promote ‘the hidden natural strengths of milk’, featuring ‘the knights of milk’. Part of a seven-country co-operation at EU level to promote the benefits of milk, the Irish campaign featured five-times National Surfing Champion Easkey Britton and her mother. The key message is that, from an early age, her mother encouraged Easkey to eat a healthy, balanced diet. Today, Easkey relies on this guidance to help her make the most of her passion - surfing the waves. As part of her diet, Easkey includes milk as it naturally provides many nutrients such as calcium and protein. The campaign spend was approximately €250K across TV, Print & Digital educating consumers on the nutritional benefits of milk, giving them more reasons to buy.
Dairy in Main Stream and Social Media The NDC’s partnership with TV3 continued this year with coverage of many aspects of the NDC’s work in promoting dairy excellence to consumers in different ways.
Five-times National Surfing Champion, Easkey Britton, and her mum featured in the Milk – A Force of Nature campaign in 2014.
The NDC seeks to promote the benefits of dairy as part of a balanced diet and healthy lifestyle across a broad spectrum of media channels. During 2014 the NDC delivered €2 million worth of dairy content through the NDC’s own programmes and also through providing rich content around events such as World Osteoporosis Day or World Milk Day, as well as seasonal advice, for example, the versatility of dairy as part of Christmas celebrations. It works closely with media partners to maximum the exposure. The NDC continued to be very active on social media including Facebook and Twitter during 2014. These channels are a cost effective means to engage consumers through interactive promotions, bite-size information on aspects of nutrition and to profile events and NDC ambassadors. Through sponsorship of RTÉ One Television’s Ear to the Ground and RTÉ Radio 1’s CountryWide the NDC has created greater awareness of its work in supporting the dairy sector and maintains a link with farming communities across Ireland. These sponsorships continued in 2014.
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Building and Maintaining Industry Reputation Protecting and enhancing the reputation of the Irish dairy sector is a key strategic priority for the National Dairy Council. During 2014 the NDC undertook research to assess the future reputation opportunities and challenges facing the sector. Ireland’s dairy industry is facing into a period of unprecedented but very exciting change. The abolition of milk quotas in 2015 presents huge opportunities and the industry’s reputation at home and abroad will be critical to future success. As part of the process NDC spoke to a cross section of stakeholders, both domestic and international, about how the industry should position itself in the future in light of the changed landscape for the industry.
ReputationInc, an Irish-based international reputation management consultancy, with extensive experience of working with leading multi-nationals and major Irish companies in the area of reputation research was commissioned to undertake this research on behalf of the NDC. The main research themes in Defining Ireland’s Dairy Industry Reputation are – – – –
Current reputation of the industry Reputation Risks Facing the industry Protecting and enhancing the reputation Future desired reputation
Research Themes
1
2
3
Current Reputation - Top of mind impressions - Key strengths and defining characteristics - Quantitative assessment of strengths
Research Themes Reputation Risks Facing the Industry - Key reputational risks - Quantitative assessment of risks and industry preparedness - Mitigating against reputation risk
4
Protecting & Enhancing the Reputation - Responding to potential threats - Overall industry representation
Future Desired REPUTATION - Key opportunities - Quantitative assessment of opportunities and industry preparedness - Reputation at home vs abroad - Competitors - Lessons from abroad
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NDC Annual Conference The NDC Annual Conference focusing on Irish Dairy: Post Quota Drivers of Growth was held in May. Participants heard that three mega trends are presenting an unprecedented era of opportunity for the dairy industry, in which Ireland is well positioned for success. These are: 1. Growth in the economies of emerging markets such as Africa, Asia and South America fuelling demand for high value food products against finite food sources 2. Research and innovation which provides new applications for dairy, for example in sports nutrition and healthy ageing, supported by technologies which enable valuable fractions of milk to be isolated – such as protein. 3. Consumer demands for both quality and sustainability in the products they purchase. Participants heard that economists estimate that expansion which will follow the abolishment of milk quotas in 2015 could be worth €1.3 billion per year to our economy, with the potential to create 15,000 additional jobs, from farm gate to dairy processors. While the Irish dairy sector has been resilient and innovative throughout times of recession and milk quota restrictions it must have the capability to act adroitly, making the most productive use of our pasture-based, natural resources in a sustainable manner to be able to respond to the trends emerging, the conference heard.
Tom Hayes T.D., Minister of State at the Department of Agriculture, Food & the Marine gave the opening address. He told the audience that for the first time ever, Irish dairy exports exceeded €3 billion in value in 2013.He added that using science and innovation to add value to a fresh traditional Irish dairy product is a core vision in Food Harvest 2020. The themes of innovation and quality were taken up by presentations and panel discussions by experts in their fields. These demonstrated how, taken together, concentrating on these two areas can help to open more doors for the Irish dairy sector. Rugby professional Rob Kearney, Professor of Physiology of Exercise at Maastricht’s University Medical Centre, Professor Luc van Loon and Dr. Catherine Logan, Nutrition Manager, National Dairy Council; took part in a discussion which explored modern applications of dairy in sports nutrition and healthy ageing. It was chaired by Professor Niall Moyna, Director for the Centre of Preventative Medicine at Dublin City University. Professor van Loon told the Conference that similar to the athletes, healthy ageing can be regarded as a sport and requires a smart combination of exercise and nutrition to optimise exercise training efficiency. He went on to explain that with athletes approaching their limits with respect to training volume and intensity, good nutritional practice becomes even more important. This has renewed
The 2014 NDC Annual Conference featured a forum on Dairy Nutrition chaired by Prof. Niall Moyna (DCU) and included Prof Luc van Loon (Maastricht University), rugby professional, Rob Kearney; and Dr. Catherine Logan (NDC). Photo: Patrick Bolger
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the interest among athletes, coaches, and exercise physiologists in the role of nutrition on the skeletal muscle adaptive response to exercise training. Dairy Quality was the subject of the second panel discussion featuring John Byrne (Aurivo Dairy Ingredients); Dr. Pat Dillon (Teagasc); Seán Molloy (Glanbia Ingredients Ireland); and Joe Moriarty (Kerry Agribusiness). The discussion was chaired by Suzanne Campbell, writer and broadcaster on food and farming. Quality is central to securing existing and new marketplaces for Irish dairy products participants were told. The Irish dairy industry is known as a producer of quality, safe and sustainable dairy produce sets Ireland apart from our competition and this can provide the basis for a secure platform at home and abroad, particularly as consumers have a growing interest in both the quality and provenance of the products they purchase. NDC Chairman Jackie Cahill thanked the dairy sector and Irish farmers for supporting the work of the NDC, particularly in this, its 50th Anniversary year. He told the conference that now is the golden era of opportunity for the Irish dairy sector. He said that the NDC fully intends to play its part in helping to unlock dairy’s potential in the coming years.
Health and Wellbeing Evenings Three Health and Wellbeing Evenings were held in 2014, co-hosted by local partners. These community-based events are designed to be entertaining as well as informative. They provide access to experts who can answer questions and give practical tips on diet, fitness and lifestyle habits, as well as highlighting the importance of dairy as part of a balanced diet. With proceeds donated to a local charity, these well-attended events facilitate partners to connect with their customers and to generate awareness of the importance of the dairy industry in helping to sustain local communities. In February, award-winning TV broadcaster, Kathryn Thomas, was MC at the Killarney event cohosted by Dawn Milk. Proceeds on the night went to The Donal Walsh #Livelife Foundation.
Fitness and Performance expert, Joe O’Connor, gave an introduction to fitness and to the principles of training, advising that one size does not fit all and suggesting that people set individual goals and develop an effective plan to achieve those goals. Leading independent dietitian, Paula Mee, advised that a few small changes diet and lifestyle habits could make a really big difference. She advised against ’fad’ diets and emphasised that “the only effective approach for successful weight loss that lasts is to adopt a healthier lifestyle which includes a balanced diet and regular physical activity.” Chef Mark Doe, from Just Cooking in Killarney challenged the audience members on becoming the perfect “Domestic God or Goddess” with an entertaining cookery demonstration. Avonmore and the NDC co-hosted a Health and Wellbeing Evening in Gorey, Co. Wexford in October, attracting a large audience. Broadcaster and designer Brendan Courtney was MC with local charity, Advocates for Autism, the beneficiaries of the evening. Dietitian Paula Mee reminded the audience that “As part of the Department of Health’s guidelines, three servings from the ‘milk, yogurt and cheese’ food group are recommended each day, with five servings daily recommended for those aged 9-18 years, due to the importance of calcium during this life stage”. Fitness and Performance expert Joe O’Connor, advised that adopting a fitness regime that somebody else enjoys will not necessarily be one that you will enjoy, and that identifying your own limiting factors is essential for success. Award winning chef, Phelim Byrne, originally from Blackwater, Co. Wexford, gave a cookery demonstration during the evening, showcasing the quality and versatility of Irish dairy produce.
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The third Health & Wellbeing Evening was cohosted by the NDC and North Cork Creameries and was held in Kanturk in November. Radio broadcaster Patricia Messinger was MC for the evening with all proceeds donated to three local charities: Kanturk Community Hospital; Cope Foundation, Kanturk; and St. Joseph’s Foundation, Charleville. Dietitian Paula Mee advised that learning to take good care of yourself is a lifelong learning process that is constantly changing as your needs and circumstances change. Paula suggested offering a mindful approach to eating which involves food awareness skills such as recognising when you are hungry and full, reflecting on the health consequences of particular foods and evaluating portion sizes. Fitness and Performance expert Joe O’Connor echoed the idea of having achievable goals, providing an inspiring insighton the principles of training and fitness. Suzanne McCauley Bourke from Kanturk Cookery School highlighted dairy diversity in her cookery demonstration which included creamy potato soup, seafood and spinach lasagne and a buttermilk panna cotta.
Promoting the Versatility of Cheese In October 2014 the European Commission announced that it will support a three-year cofunded information and promotion campaign promoting cheese and cheese culture. The proposal to the EU was co-ordinated through the European Milk Forum (EMF) on behalf of the organisations responsible for promoting dairy products in Ireland, Northern Ireland, Denmark and France. The Irish submission was supported by the NDC in conjunction with the Department of Agriculture, Food & the Marine. The EU Cheese Programme will be co-funded by the dairy industry, over three years starting in 2015, with €720,328 allocated to promoting cheese in the Republic of Ireland. The aim of the single campaign is to give consumers a clear understanding of the role cheese can play in the everyday diet identifying different occasions to eat cheese, different ways in which cheese can be used at mealtimes and new ways to use cheese.
Independent dietitian, Paula Mee, presents at an NDC Health & Wellbeing Evening run in association with NDC member co-ops. Photo: Patrick Bolger
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Scientific Expertise at the Heart of Communications on Dairy Nutrition In promoting the benefits of dairy products as part of a balanced diet, the NDC draws on evidencebased information to inform its work. This is a core component in our communications to our stakeholders. It continues to be an important part of why the NDC has been successful in creating partnerships and alliances with respected professional bodies, with sports and health professionals and with other stakeholders with a particular interest in the role dairy plays in health and nutrition. Part of the NDC‘s work is to monitor relevant regulatory affairs and guidance from authorities to ensure communications to the various audiences are in line with regulatory requirements and best-practice. For example, during 2014 the NDC continued to monitor developments and evaluate potential outcomes for the Irish dairy industry in relation to Front of Pack (FoP) nutrition labelling following the launch of the UK Department of Health’s Guide to creating a front of pack (FoP) nutrition label for pre-packed products sold through retail outlets in June 2013 to which major UK retailers as well as a number of large food companies have signed up to implement.
Symposium for Dietitians on Nutrition and Healthy Ageing The corporate partnership with the Irish Nutrition and Dietetic Institute (INDI) strengthened in 2014. This partnership provided unique opportunities for communicating with dietitians on dairy nutrition. For example, the INDI and the NDC co-hosted a symposium on Healthy Ageing: The Nutritional Challenges. The symposium explored the nutritional challenges facing the ageing population group and how dietary advice for this group must be tailored to reflect their specific requirements and health concerns. Richelle Flanagan, Interim CEO of the INDI, explained that malnutrition, sarcopenia and osteoporosis are just a few examples of clinical conditions which are particularly relevant to the ageing process and older adults. Plenary sessions were delivered by experts from Switzerland and the Netherlands. Speaking about The Role of Protein in the Healthy Ageing of the Skeleton, Professor Jean-Philippe Bonjour, Division of Bone Diseases, University Hospital, Geneva considered the nutritional requirements for bone health with a primary focus on protein. Professor Bonjour’s overview of the relationship between dietary protein and bone health highlighted why the increasing trend regarding the removal of animal proteins from the diet is not scientifically justified in relation to bone health.
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Exploring the Science behind the Benefits of Dairy Protein in Age-Related Changes in Skeletal Muscle was the subject of a presentation by Professor L.J.C. van Loon, Professor of Physiology of Exercise, Maastricht University Medical Centre, The Netherlands. Professor Luc van Loon said that recent studies suggest that the muscle protein synthetic response to food intake is blunted in the elderly. He described contemporary research by his group which allows them to study dairy protein digestion and absorption kinetics, as well as the subsequent muscle protein synthetic response in humans.
O’Flaherty, HSE- Dublin North City. This addressed nutritional considerations for elderly patients as typically seen in community practice. Ms O’Neill reported that more than 140,000 adults in Ireland are malnourished or at risk of disease related malnutrition (DRM), half are over 65 years of age with the vast living in the community. Dr. Catherine Logan, Nutrition Manager, National Dairy Council, highlighted the nutritional value of milk and dairy. She reiterated that milk, yogurt and cheese are excellent sources of high quality protein. The Symposium was organised as part of National Dairy Week.
The symposium concluded with an interactive case study facilitated by Community Dietitian Manager Margaret O’Neill, HSE- Dublin South Central, and Senior Community Dietitian Leán
SN Forum (Sports Nutrition Forum)
DN Forum (Dairy Nutrition)
Sports Nutrition Forum (SN Forum) - a publication produced by the NDC for Sports and Fitness Professionals - presents information and practical advice on sports nutrition as well as highlighting the various roles of dairy. Three issues were published in 2014. The SN Forum features interviews with Irish sports stars and articles by Ruth WoodMartin, Performance Nutritionist, with the IRFU. The August issue, for example, offered advice to travelling athletes, outlined research on whey protein and featured an interview with Natalya Coyle, Irish modern pentathlete.
Published three times a year, DN Forum provides expert reviews on dairy nutrition and health. The NDC works with Food Health Ireland (FHI) on the production of the publication, with each issue focusing on a particular topic. Topics during 2014 include Milk Oligosaccharides and Infant Formula; and An Update on the Nutritional Benefits of Cheese.
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Dairy Research The NDC is activity involved in dairy nutrition research. The NDC funded research project at the University of Limerick on Milk as a Rehydration Drink after Exercise continued in 2014. This research project is also financing a Postgraduate Educational Training Grant which is enabling a student to undertake a Master of Science by Research. The aim of the project is to expand and build on the existing body of knowledge in relation to milk and rehydration post-exercise.
Milk, Nutritious by Nature The NDC-commissioned dairy-specific analysis of the National Adult Nutrition Survey focusing on adults aged 65 years and over was completed in 2014. The Dairy Research Trust Co-operative Society Ltd. awarded a grant to the NDC to finance this analysis.his project provides up-to-date information on, and insights into, dairy consumption trends in the 65+ age group. The final report and summary leaflets are accessible via the health professional area on the NDC website. During 2014 the NDC appointed a Healthy Ageing: Nutrition and Strategy Executive who conducted desk-based research to establish the evidencebased messages regarding the role of dairy in supporting healthy ageing.
The European Milk Forum (EMF) Milk, Nutritious by Nature programme is a science-based programme aimed at creating awareness of the nutrient richness of milk and dairy and underlining the contribution of milk and dairy to a healthy and balanced diet. Its activities are targeted towards the non-consumer audience, with each country utilising activities to meet their own respective objectives. During 2014, the NDC, as part of Milk, Nutritious by Nature, took part in a Symposia Roadshow which involved similar symposia taking place in Belfast, Dublin and Paris over three consecutive days. Another key activity of this programme during 2014 was the completion and effective dissemination of the scientific brochure on the benefits of milk and dairy foods.
Pictured at the INDI/NDC co-hosted symposium exploring Healthy Ageing: the Nutritional Challenges were (L-R) Dr. Lean O’ Flaherty, HSE Dublin – North City; Dr. Catherine Logan, NDC; Prof. Luc van Loon, Maastricht University Medical Centre; Margaret O’Neill, HSE Dublin – South Central; Richelle Flanagan, INDI; and Prof. Jean-Philippe Bonjour, University Hospital Geneva. Photo: Colm Mahady/Fennells
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The Roadshow symposia entitled Exploring the Health Benefits of the Milk Matrix, presented updates on the most recent studies exploring the health benefits of the milk matrix. The Dublin event was hosted in collaboration with the Irish Nutrition & Dietetic Institute. The audience heard from a range of experts including Dr. Jean Michel Lecerf, Head of Department of Nutrition at Institut Pasteur de Lille, France; Professor Arne Astrup, Head of Department of Nutrition, Exercise and Sports at the University of Copenhagen; and Professor Ian Givens, Professor of Food Chain Nutrition at UK’s University of Reading.
The scientific brochure Milk, Nutritious by Nature: The Science behind the Health and Nutritional Benefits of Milk and Dairy Foods was widely distributed in Ireland this year. It is a pan-European publication on the benefits of milk and dairy foods. It is the result of collaboration between the nutritionists from the European Milk Forum (EMF) member organisations, including the NDC. It provides an up-to-date, comprehensive overview of the scientific basis for the nutrition and health benefits associated with milk. Topics covered include: Bone health, Blood pressure, Weight control, Type 2 diabetes, Cardiovascular disease, Colorectal cancer, Muscle mass maintenance in older people and Recovery after exercise.
Jennifer Feighan, CEO, INDI, welcomed the European scientists to Dublin and said that their expertise strongly demonstrated that milk and milk products can play an important role in a healthy, balanced diet.
Expert speakers at a symposia roadshow as part of Milk, Nutritious by Nature programme: Dr. Jean Michel Lecerf, Head of Department of Nutrition at Institut Pasteur de Lille, France; Professor Arne Astrup, Head of Department of Nutrition, Exercise and Sports at the University of Copenhagen, Denmark; and Professor Ian Givens, Professor of Food Chain Nutrition, University of Reading, UK. Photo: Shane O’Neill/ Fennells
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Dairy Education for Schools Continues to Thrive During 2014 the NDC continued to put resources into Improving attitudes, relevance and consumption of milk and dairy produce among the 5 – 18 year old age group. It does this principally by working directly with both primary and second level school students and their teachers promoting dairy as part of a balanced diet and healthy lifestyle. Students are motivated to understand more about the relevance of dairy to their diet and lifestyle through participating in creative, team activities that offer fun, interesting challenges with an enjoyable competitive element. The primary school programme Moo Crew is now in its successful second year, while the popular Milk It Awards for second level students is now in its fourth year.
Programmes for Primary Schools – Moo Crew During the year, the NDC continued to inform children in 3rd to 6th class of the importance of dairy as part of a balanced diet and healthy lifestyle while exploring where their food comes from.
Moo Crew: The Primary Dairy Moovement, secured participation at varying levels from 833 primary schools in 2014. Information packs were distributed to all primary schools. Teachers were then encouraged to involve their pupils in the learning initiative through free online lesson plans, videos, games and a competition centred around National Dairy Week in May. Schools were encouraged to submit creative projects demonstrating their learnings from the Moo Crew programme. Participating schools engaged in a range of ways, including use of lesson plans, class-based activities or use of web resources and exercise videos (www.moocrew.ie). Milly the cow, the popular Moo Crew mascot, added colour and fun with ‘Milly’s blog’, sharing her exercises, tips and favourite recipes. Colouring competition entries were received from 1,181 children. Children had the option to ask questions of Moo Crew ambassador, Olympic boxer Darren O’Neill, who is also a qualified primary teacher. Throughout the 2014 campaign, 833 schools engaged with the programme, an increase of almost 100% on the previous year. The three finalist teams won a VIP trip to Causey Farm where they tried their hand at milking cows, making bread and butter and bog-jumping.
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Darren O’Neill, who captained the Irish boxing team at the 2012 Olympics put the winning team through their paces in a training session and presented them with a sports equipment voucher valued at €1,200. The winning project from 3rd and 4th class in Ballaghlea National School, under the guidance of teacher Eimear Mahony, was entitled ‘Our Moo-ving Experience’ and their excellent project book detailed all of the activities that the classes undertook to ensure that the Moo Crew message reached the entire school. The other two national finalists in the competition were: –
–
–
Duleek BNS, Duleek, Co. Meath – 3rd class pupils whose project was entitled ‘Our Mooving Story: Duleek Discovers Dairy’ Banteer National School, Clonmean Road, Banteer, Co. Cork – 5th & 6th class pupils whose projects were entitled ‘Daisy’s Dairy Diary Website’. In addition €100 euro book tokens have been awarded to the best entry in each county from the 26 counties participating.
In 2015 Moo Crew will be further developed to reach pupils in 1st and 2nd class and will also include a new ‘Cheese up your life!’ lesson plan and illustrated poster.
Programme for Second Level Schools - Milk It Awards The NDC Milk It Awards were back for a fourth successful year, challenging Irish teenagers to create an advertising agency and concepts for an original television advert promoting the benefits of dairy to their peers. The team-based, national initiative has cross-curricular applications for teachers and students. Twenty teams of finalists were shortlisted from 358 entries to attend the prestigious Milk It Awards final taking place in the Mansion House during National Dairy Week. Provided with web support, media and nutrition guidance the shortlisted students expanded their projects to show how their creative and strategic campaigns could be activated.
Judges who supported the short listing process, included Ian McColl (Senior Creative Consultant, KICK Communications); Michael O’Leary (National Co-ordinator Transition Year Programme); and Caroline O’Donovan (Nutritionist, National Dairy Council). Guests at the final were treated to a nerve-racking X- Factor style advertising pitch by all twenty teams on the day to the judging team consisting of Richard Curran, Business journalist, author and broadcaster (including Dragons’ Den); Barry Dooley, Chief Executive, Association of Advertisers in Ireland; Paula Mee, Independent dietitian; and Amanda McCloat, Head of Home Economics at St. Angela’s NUIG Sligo. Transition Year students from Árdscoil Na Tríonóide, Rathstewart, Athy, Co. Kildare – Ellen Purcell, Eadaoin Burgess, Clodagh Walsh, Emma Owens, Anna Cully, Adam Ryan (Teacher: Jacqueline Cooper) took the coveted overall prize with their entry ‘sMOOlicious’. The winning team were then treated to the experience of a lifetime, a day at TV3/3e studios where their storyboard was transformed into a TV advert and aired on TV3 and 3e during September for a two week period. The 2014 winners of the Junior Category were: “Dairy to Dream” – 2nd Year students from Magh Éne College, Church Road, Bundoran, Co. Donegal – Eimear Colreavy, Rozarah Glenane, Laura Russell, Anna-Maya Pawlowski, Mary Loughlin, Breeg Clancy (Teacher: Kim Igoe). The 2014 winners of the Senior Category were: “Belle Bó Advertising” – TY students from St. Mary’s Secondary School, Convent of Mercy, Macroom, Co. Cork – Shauna Buckley, Niamh Dineen, Niamh Relihan, Laura Murphy, Sinead Cronin, Kirstin O’Reilly (Teachers: Arlene O’Donoghue/Eibhlin Collins).
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Looking Forward to a New Era in Dairy By the end of 2015, the dairy industry will already have experienced significant change with the ending of the milk quota system. The industry in Ireland will be entering a new era. During 2015 the NDC will continue to implement the strategy it set itself in 2013: this centres on its core mission which is to promote the benefits of dairy as part of a balanced diet and healthy lifestyle. Plans are already in place to revamp the NDC website to make it more mobile friendly. We will have a stronger online and digital presence to reach consumers in the virtual space. This will give the NDC new ways to reach consumers in engaging ways. Planning for National Dairy Week is underway with an integrated range of activities across all the work streams of the NDC. Demonstrating the diversity and versatility of dairy will again be to the forefront. A new EU-supported campaign to tell consumers about the many ways to use cheese will feature in this effort.
The NDC will develop a specific Healthy Ageing Communications Platform, underpinned by science-based evidence on the benefits of dairy in an ageing population. Strengthening our relationships with health professionals and sports nutritionists will receive further resources, including the development of more interactive events and communications, based on scientific expertise. In our dairy education programmes for schools, we will focus on the development of an exciting new initiative to support the message of the importance of dairy and the role of a balanced diet and a healthy and active lifestyle during the teenage years. We will continue to build on our relationships with partners in the industry, in the media and with Irish consumers to ensure that we get the message across that Irish dairy makes a contribution to local jobs and the broader economy and that it is sustainable and nutritious by nature.
Looking forward to a new era in Dairy Farming are NDC Chairman, Jackie Cahill; RTÉ Radio 1’s CountryWide presenter, Damien O’Reilly; and Zoë Kavanagh, NDC Chief Executive. Photo: Andres Poveda
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The National Dairy Council (A company limited by guarantee and not having a share capital)
27
Directors and Other Information
Reports and Financial Statements for the year ended 31 December 2014
28
Directors’ Report
30
Statement of Directors’ Responsibilities
31
Independent Auditor’s Report
33
Income and Expenditure Account
34
Balance Sheet
35
Cashflow Statement
36
Notes to the Financial Statements
Annual Report 2013
27
Directors and Other Information Directors
Solicitors
Mr. J. Cahill (Chairman) Mr. T. Cashman (Vice Chairman) Mr. J. Comer (Appointed 26/02/2014) Mr. P. Gibbons Mr. T. Maher Mr. E. McEnteggart Mr. J. Murphy Mr. J. Murray (Appointed 26/02/2014) Mr. S. O’Leary (Appointed 26/02/2014) Mr. C. O’Sullivan (Appointed 04/03/2015) Mr. C. Ryan Mr. P. Sheahan Mr. E. Sweeney Mr. F. Tobin Mr. B. Walsh (Appointed 26/02/2014)
Gleeson McGrath Baldwin 29 Angelsea Street Dublin 2
Auditor Deloitte & Touche Chartered Accountants and Statutory Audit Firm Deloitte & Touche House Earlsfort Terrace Dublin 2
Bankers AIB Bank 1 Lower Baggot Street Dublin 2
Chief Executive And Secretary Zoë Kavanagh
AIB Bank St. Helen’s 1 Undershaft London EC3A 8AB
Registered Office Innovation House 3 Arkle Road Sandyford Dublin 18
Registered Number 21650
J & B Davy Davy House 49 Dawson Street Dublin 4
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Directors’ Report The Board of Directors submit their annual report and the financial statements for the year ended 31 December 2014. 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 33 and 34 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 And Secretary The current members of the Board of Directors and the company secretary are set out on page 27. On 26 February 2014, John Comer, John Murray, Sean O’Leary and Brendan Walsh were all appointed as directors, while Timothy Cashman replaced Stephen Shorten as Vice Chairman. On 31 December 2014, Tony Horan resigned as director. On 4 March 2015, Con O’Sullivan was appointed as director.
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, Dublin 18.
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Directors’ Report (contd.) 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.
Auditor The independent auditor, Deloitte & Touche, Chartered Accountants and Statutory Audit Firm, continue in office in accordance with Section 160(2) of the Companies Act, 1963.
Signed on behalf of the Board:
Jackie Cahill Timothy Cashman Director Director 8 April 2015
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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 surplus or deficit of the company for that period. In preparing those financial statements, the directors are required to: –– select suitable accounting policies for the company financial statements 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 2013. 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.
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Independent Auditor’s 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 2014 which comprise the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and the related notes 1 to 12. The financial reporting framework that has been applied in their preparation is Irish law and accounting standards issued by the Financial Reporting Council and promulgated by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting Practice in Ireland).
(A Company limited by guarantee and not having a share capital)
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 As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the preparation of the financial statements giving a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
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Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Reports and Financial Statements for the year ended 31 December 2014 to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements 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 2014 and of the surplus for the year then ended; and –– have been properly prepared in accordance with the Companies Acts, 1963 to 2013.
Matters on which we are required to report by the Companies Acts, 1963 to 2013 –– We have obtained all the information and explanations which we consider necessary for the purposes of our audit. –– In our opinion proper books of account have been kept by the company. –– The financial statements are in agreement with the books of account. –– In our opinion the information given in the directors’ report is consistent with the financial statements.
Matters on which we are required to report by exception We have nothing to report in respect of the provisions in the Companies Acts, 1963 to 2013 which require us to report to you if, in our opinion, the disclosures of directors’ remuneration and transactions specified by law are not made.
Kevin Sheehan For and on behalf of Deloitte & Touche Chartered Accountants and Statutory Audit Firm Dublin 8 April 2015
Annual Report 2014
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Income and Expenditure Account For the Year Ended 31 December 2014
2014 2013 Notes â‚Ź â‚Ź
Income 2,923,663 2,752,555
Expenditure Direct expenses Establishment expenses Administrative expenses
2,641,268 2,162,441 65,844 65,502 198,136 218,290
Total expenses
2,905,248 2,446,233
Surplus on ordinary activities before taxation 2 18,415
306,322
Taxation 4 (311) (822) Surplus on ordinary activities after taxation 18,104
305,500
Opening accumulated surplus
1,108,203 802,703
Surplus on ordinary activities after taxation
18,104 305,500
Retained accumulated surplus carried forward
9
1,126,307 1,108,203
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 8 April 2015 and signed on its behalf by: Jackie Cahill Timothy Cashman Director Director
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Balance Sheet As at 31 December 2014
2014 2013 Notes â‚Ź â‚Ź
Fixed Assets Tangible assets
5
5,833 11,198
Current Assets
Debtors 6 206,438 150,362 Bank 1,199,312 1,071,566
1,405,750 1,221,928 Creditors: (Amounts falling due within one year)
7
(285,276) (124,923)
Net Current Assets 1,120,474 1,097,005 Net Assets 1,126,307 1,108,203
Represented by: Accumulated Surplus 9 1,126,307 1,108,203
The financial statements were approved by the Board of Directors on 8 April 2015 and signed on its behalf by:
Jackie Cahill Timothy Cashman Director Director
Annual Report 2014
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Cashflow Statement For the Year Ended 31 December 2014
2014 2013 Notes â‚Ź â‚Ź
Reconciliation of Operating Surplus to Net Cash Flow from Operating Activities Operating surplus
18,415 306,322
Less: interest income
(1,241) (3,289)
Depreciation 5,635 7,806 (Increase)/decrease in debtors
(57,049) 69,017
Increase/(decrease) in creditors 160,353 (238,536) Net Cash Inflow From Operating Activities 126,113 141,320 Returns on Investment and Servicing of Finance Interest income
1,241 3,289
Taxation Taxation refunded/(paid)
662 (696)
Financing Activities Payments to acquire fixed assets (270) (1,411) Increase in Cash Position for the Year 10 127,746 142,502
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Notes to the Financial Statements for the Year Ended 31 December 2014
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 2013. 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 Financial Reporting Council. 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. All other income is credited to income in the period 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: Office equipment Computer equipment
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.
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Notes to the Financial Statements (continued) For the Year Ended 31 December 2014 2. Surplus On Ordinary Activities Before Taxation
2014 2013 € € The surplus before taxation is stated after charging: Directors’ remuneration Directors’ expenses Auditor’s remuneration Depreciation and after crediting: Interest income
44,223 46,646 22,727 24,487 10,700 10,700 5,635 7,806
1,241 3,289
3. Employees
2014 2013 € €
Wages and salaries 432,547 409,919 Social Welfare costs 45,033 40,229 Pension 31,637 28,910 509,217 479,058
The average number of employees for the year was 9 (2013: 9). The number of employees at the year ended 31 December 2014, including ten directors, was 16 (2013: 16).
4. Taxation Corporation tax was incurred on interest earned as follows: Corporation tax @ 25%
2014 2013 € € 311 822
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Notes to the Financial Statements (continued) For the Year Ended 31 December 2014 5. Tangible Assets
Computer Office Equipment Equipment Total € € € Cost: At 1 January 2014 65,884 41,453 107,337 Additions - 270 270 At 31 December 2014 65,884 41,723 107,607 Depreciation: At 1 January 2014 55,088 41,051 96,139 Charge for the year 5,367 268 5,635 At 31 December 2014 60,455 41,319 101,774 Net book value: At 31 December 2014 5,429 404 5,833 At 1 January 2014 10,796 402 11,198
6. Debtors: (Amounts falling due within one year)
2014 2013 € €
Other debtors 138,762 94,957 VAT recoverable 67,658 54,414 Corporation tax 18 991 206,438 150,362
7. Creditors: (Amounts falling due within one year)
2014 2013 € €
Trade creditors 225,820 70,112 Accruals and sundry creditors 43,075 31,411 PAYE/PRSI 16,381 23,400 285,276 124,923
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Notes to the Financial Statements (continued) For the Year Ended 31 December 2014 8. Pension The company operates a defined contribution pension scheme. Contributions payable in respect of the year ended 31 December 2014 amounted to €31,637 (2013: €28,910). There were no pension contributions outstanding at the year end (2013: €Nil).
9. Accumulated Surplus 2014 2013 € €
Accumulated surplus at the beginning of the year 1,108,203 802,703 Surplus for the year 18,104 305,500 Accumulated surplus at the end of the year 1,126,307 1,108,203
10. Analysis Of Changes In Net Funds
Opening balance Cashflow Closing balance € € €
Cash at bank and in hand 1,071,566 127,746 1,199,312
11. Commitments 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 and other income. The total voluntary levy income and other income received in the normal course of business from these co-operatives amounted to €2,029,014 (2013: €1,953,108). The total expenses claimed by these directors for the year ended 31 December 2014 amounted to €13,953 (2013: €20,482). The directors held 6 meetings during the year ended 31 December 2014 (2013: 7 meetings).
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The National Dairy Council wishes to thank its Member Co-ops for their continued support, ensuring long-term success of NDC dairy marketing campaigns and initiatives
Ardrahan Lullaby Milk Arrabawn Co-operative Society Ltd. Aurivo Co-operative Society Ltd. Bandon Co-operative Agricultural and Dairy Society Barryroe Co-operative Ltd. Boherbue Co-operative Ltd. Callan Co-operative Agricultural and Dairy Society Ltd. Centenary Thurles Co-operative Society Ltd. Cl贸na Dairy Products Society Ltd. Drinagh Co-operative Ltd. Drogheda Producers Co-operative Ltd. Fealesbridge & Headleys Bridge Co-operative Dairy Society Ltd. Glanbia Co-operative Society Ltd. Glenveagh Agricultural Co-Operative Society Ltd. Irish Dairy Board Co-operative Ltd. Kerry Co-operative Creameries Ltd. Kill Co-Operative Agricultural & Dairy Society Ltd. Lee Strand Co-operative Creamery Ltd. Lisvaird Co-operative Creamery Ltd. Mullinahone Co-operative Dairy Society Ltd. Newtownsandes Co-operative Dairy Society Ltd. North Cork Co-operative Creameries Ltd. Wexford Milk Producers Society Ltd.
The National Dairy Council Annual Report 2014
The National Dairy Council Innovation House 3 Arkle Road Sandyford Dublin 18 Ireland t +353 (0)1 290 2451 f +353 (0)1 290 2452 e info@ndc.ie www.ndc.ie