Dairy: Food for Life Annual Report 2009 - The National Dairy Council

Dairy: Food for Life 

Annual Report 2009 

National Dairy Council Annual Report 2009 

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The National Dairy Council 

28 Westland Square, 

Dublin 2, 

Ireland 

Tel: +353 1 616 9726 

Fax: +353 1 616 9760 

E: info@ndc.ie 

W: www.ndc.ie 

© National Dairy Council (NDC) 2010. 

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. 

Pantone 342 

Published by IFP Media, 31 Deansgrange Road, 

Blackrock, Co Dublin 

www.ifpmedia com 

4 Chairman’s Statement 

5 Chief Executive’s Statement: 2009 in Review 

10 Reports and Financial Statements 

22 Board Organisational Chart 

23 Sub-Committee Organisational Charts 

25 Staff Organisational Chart 

26 Function Organisational Chart 


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Chairman’s Statement 

INTRoDuCINg ThE NATIoNAL DAIRy CouNCIL’s 

annual report for 2009 offers the welcome opportunity to reflect 

that, as of mid 2010, a sense of optimism about the future of our 

industry is now much more in evidence than it was during that 

exceptionally difficult year. This is not to say that the challenges 

impacting on the sector have been relieved entirely although 

there has been a good recovery in milk prices. However, 

volatility could be a key problem for the dairy industry going 

forward. Having said that, the collective prospects for the 

Irish dairy sector, as viewed by retailers, processors and dairy 

farmers themselves, are undoubtedly much improved and 

the combination of factors that impacted on the sector with 

such force in 2009 – weak global prices, a rapidly contracting 

national economy and consumers in economising mode – have 

eased. 

For most of us, 2009 will be remembered as the year when the 

transition of the Irish economy into recession, which began 

in 2008, took full effect. The collapse in milk prices to below 

the cost of production, along with general price deflation 

across retailing, was the direct consequence of huge economic 

uncertainty both nationally and internationally and created 

a highly challenging environment for all within the dairy 

sector. One notable positive, however, was that levels of dairy 

consumption in Ireland were not adversely affected by recession. 

As an advocacy and promotional agency funded directly by 

dairy farmers, the key priority for the NDC in 2009 was to 

ensure the public did not lose sight of the enduring values of 

locally farmed milk or the central place of our dairy output in 

Irish life. Guided by the five-year strategy Dairy: Food for Life, 

NDC activity over 2009 demonstrated once again the robustness 

and farsightedness of this strategy document, which was initially 

launched in April 2008, a time when few could have predicted 

the economic turmoil that lay ahead. 

The launch of the ‘Farmed in the Republic of Ireland’ trade 

mark, in co-operation with our industry partners, in September 

2009 was perhaps the most significant individual initiative 

undertaken over the year. Through it, the relationship between 

local dairy farmers and consumers has been renewed and 

revitalised. Research data published in early 2010 has confirmed 

very positive consequences for our industry. 


This singular accomplishment is far from the whole story of 

NDC activity in 2009, however. A comprehensive programme 

of events has secured a national footprint that many far larger 

organisations would be proud of. Particular highpoints include 

the roll out of the School Milk Programme; the launch of the 

Quality Milk Awards; and the announcement, in December 

2009, of EU co-funding for the ‘Milk in Action’ Programme, 

which the NDC is now tasked with overall responsibility in 

Ireland and the UK. 

As Chairman, I am proud to be part of an organisation whch, 

through vision, determination and sheer hard work, has secured 

the confidence of its many diverse stakeholders, from consumers 

right through to the dairy farming community. 

I would like to thank all of our co-op members and dairy 

farmers, who continue to support the levy. In addition, I 

would like to express my appreciation to the Department of 

Agriculture, Fisheries and Food and Minister Brendan Smith 

T.D., as their support is so vital to our ongoing success and also 

to acknowledge the huge contribution and commitment my 

fellow board members and the members of expert committees 

made over 2009. Finally, may I sincerely thank Chief Executive 

Helen Brophy and her team for another results-driven 

performance that has surpassed expectations on all fronts. 

I believe we can say that 2009, in spite of all the challenges 

it presented, was a successful one for the NDC and the 

commitment of so many to the goals at the heart of this 

organisation will ensure that 2010 is another year of 

achievement. We look forward to working together with all our 

stakeholders for the benefit of the Irish dairy industry and Irish 

consumers. 

Dominic Cronin 

Chairman 

NDC

Chief Executive’s Statement: 2009 in Review 

IT WouLD bE hARD To ovERsTATE the particular 

challenges the economic turmoil of 2009 presented to the Irish 

dairy industry, particularly over the first half of the year. Of 

most immediate concern to those of us closely involved in the 

industry was the intense financial pressure exerted on thousands 

of Irish dairy farm families, and those who work within 

the processing sector, as the downturn took full effect and 

employment and financial security were widely compromised. 

In an environment of such uncertainty, Irish consumer 

behaviour was profoundly influenced by a perceived need 

to curb expenditure and outgoings. In the dairy cabinet, this 

found expression in an increased propensity towards private 

label, discounter and imported dairy products, with branded 

and value-added products most frequently losing out as a 

result. One significant positive not to be overlooked, as the 

Chairman has pointed out in his statement, was that overall 

dairy consumption was not adversely affected. This was helped 

by consumers swapping ‘dining out’ for ‘dining in’ experiences. 

In general though, volume sales were maintained through heavy 

discounting and promotional activity, none of which is ideal in 

the long term for a sustainable and progressive dairy industry. 

However, to see the narrative of 2009 purely in terms of 

challenges would be to ignore a very significant element of 

the story. This was also a year when the Irish dairy industry 

showed tremendous resilience and self-reliance; a year when, 

with considerable vigour, it confirmed its enduring significance 

to the Irish economy. As an organisation funded directly by 

the dairying community, the National Dairy Council (NDC), 

was proud to be at the heart of a number of key initiatives and 

sought to play the fullest role possible in promoting the values 

of the sector to Irish consumers. It was also a year of further 

development in its role as an authoritative and respected voice in 

health and nutrition issues, with its growing credibility evident 

both nationally and internationally. 

All NDC activity over 2009 directly reflected the environment 

of challenge confronted by our community of stakeholders. 

However, underwriting its approach was the Dairy: Food for 

Life strategy, which was launched in April 2008 and for which 

2009 represented the first full year of activity. The continuing 

value and validity of this strategy document, against a backdrop 

of unprecedented challenge, must be seen as testament to its 

inherent coherence and robustness. As much as 2009 was a year 

of new initiatives, therefore, it was also a year of continuity 

and capacity building through the six key channels of service 

delivery set out in Dairy: Food for Life: 

• Marketing & Promotion Programme 

• Advocacy & Communications Programme 

• School Milk & Dairy Programme 

• Issues Management & Nutrition Programmes 

• Accountability & Corporate Governance 

This concerted programme-focused approach facilitated the 

NDC in communicating to a range of audiences that included 

consumers, healthcare professionals, media, school-going 

children and the dairying community. As Chief Executive, I am 

happy to report that progress was significant on all fronts, with 

the targets set out in Dairy: Food for Life met and, in many cases, 

surpassed. 

Marketing & Promotion 

While the issue of value was a prevalent consumer concern over 

the entire year, as 2009 progressed, a notable shift in attitudes 

could be discerned, with greater emphasis returning to the area 

of food provenance. The NDC was heartened by the findings 

of a Food Safety Authority of Ireland survey on food labelling 

in December 2009, which showed that ‘nearly three quarters 

(74%) of consumers thought that it should be compulsory for an 

indication of origin to be given for all foods’. 

A public increasingly receptive to such concerns was, then, 

the backdrop against which the NDC undertook what was its 

highest profile activity in 2009 – the launch of the ‘Farmed in 

the Republic of Ireland’ trade mark in November. Developed 

following a period of extensive consultation with all our 

member dairies, the trademark was not only important from a 

dairy perspective but also, arguably, one of the most significant 

media campaigns run on behalf of any sector of the Irish food 

industry over the course of the year. Through a concerted 

cross-platform media campaign, the ‘Farmed in the Republic of 

Ireland’ trade mark was effectively communicated as an easy-tounderstand 

and trustworthy indicator of dairy origin to a wide 


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consumer audience. As of early 2010, the trade mark is now 

used by ten Irish dairies and appears on over 740 retail milk and 

cream products. 

Feedback on the campaign, from both consumers and 

participating dairies, indicated, as early as January 2010, the 

strength of positive feeling it had engendered. 

Some 72 per cent of consumers surveyed commented favourably 

on the television advertisement while 55 per cent stated that 

milk with the NDC mark is now either the only milk they 

would consider or the milk they would look out for first. 

Meanwhile, all dairies rated the campaign around the trade 

mark as positive and 60 per cent were able to provide concrete 

evidence of specific customer accounts that had benefited from 

the trade mark. 

While the trade mark can be viewed as a marketing initiative, 

underpinning it is a comprehensive and robust audit 

programme, designed to monitor and verify that it features 

on milk farmed in the Republic of Ireland. No small credit 

for the success of the launch can be attributed to the choice of 

Paul O’Connell as spokesperson. A national sports figure who 

speaks convincingly to urban and rural, and younger and older 

consumers, Paul carried out his role as ‘voice’ of the campaign 

with great conviction and it is the first promotional activity he 

has undertaken outside the sporting arena. 

In a short period of time, we can speak confidently of the trade 

mark playing an important role in safeguarding the livelihoods 

of dairy farming families. Looking to 2010 and beyond, the 

NDC believes it will continue to grow in significance. 

Though it was certainly a centrepiece of NDC’s Marketing & 

Promotion activity, the ‘Farmed in the Republic of Ireland’ trade 

mark was not the only significant output in the programme in 

2009. A calendar of promotional events has now evolved with 

highlights including our Pancake Tuesday promotion with 

the Irish Osteoporosis Society. In 2009, the assistance of Ryan 

Tubridy and Derry and Sally Anne Clark of the renowned 

Dublin restaurant L’Ecrivain, helped the NDC promote the 

importance of dairy in the diet and received widespread media 

coverage, including a number of radio interviews. 

Meanwhile, participation at key farming events, such as the 

National Ploughing Championships, the Tullamore Show and 

National Dairy Show, has proved extremely successful as a 

means of communicating directly to our farming stakeholders 

and, in 2009, to further develop our links with the farming 

community, we were delighted to engage in a partnership 

agreement with Macra na Feirme. 


Advocacy & Communications 

Further evidence of the NDC’s determination to engage as 

directly as possible with the farming community was the launch 

of the NDC Quality Milk Awards in October, as part of its 

Advocacy & Communications programme. The Quality Milk 

Awards represented a concerted new initiative, recognising the 

realities of modern farming and of the need for greater lines of 

communication between farmers and consumers. The quality 

of the award nominees received through our member co-ops 

was outstanding and the media profile generated through the 

supporting PR campaign confirmed a huge opportunity to build 

awareness among consumers of the values of Irish dairying. 

The award also benefited from an expert judging panel, which 

included Professor Paddy Wall, Associate Professor of Public 

Health at UCD, Dr David Gleeson, Milk Quality Research, 

Teagasc and Jack Kennedy, Dairy Editor, Irish Farmers Journal. 

At the awards ceremony, which was held in early October in 

Citywest, Co. Dublin, Ireland’s top dairy farmer for 2009 was 

named as Brochan Cocoman from Kilwarden, Kill, Naas, Co 

Kildare. A supplier to Glanbia, Brochan was presented with 

the NDC Perpetual Cup and a cheque for €5,000. A national 

category award was also presented to manufacturing milk 

supplier Michael O’Donovan from Gurranes, Ballineen, Co 

Cork, who supplies milk to Lisavaird Co-op. Singled out for 

special commendation were: 

• Richard Claxton, Colt, Ballyroan, Portlaoise, Co. Laois 

(supplying Glanbia); 

• Gordan Kingston, Tawnies, Clonakilty, Co. Cork (supplying 

Clona Dairy Products); 

• Sean and Goretti Leahy, Corran, Waterfall, Co. Cork 

(supplying Bandon Co-op); and, 

• Cathal Moran, Curraghlane, Skeoughvosteen, via Borris, 

Co. Kilkenny (supplying Glanbia) 

Commending the finalists at the awards ceremony, Dr Gleeson 

noted: ‘The winners stand out for their attention to detail. Their 

record keeping is excellent and knowledge and enthusiasm for 

their work was obvious.’ 

Advocacy must have at its core accurate and up-to-date sciencebased 

information. To strengthen its credibility in this regard, 

the establishment of the Scientific, Nutrition & Technical 

Committee (SNT) was an important milestone of NDC activity 

in 2009. This Committee now provides expert guidance on the 

organisation’s science-based communications and will play a 

pivotal role in ensuring the highest standards underwrite all our 

health-care communications.

Recognising the important role of healthcare professionals as 

advocates for healthy lifestyle choices, DN Forum, a science 

newsletter which presents the latest peer-reviewed research 

findings on dairy, was published for the first time in early 2009. 

Three editions were produced over the year, reaching almost 

5,000 Irish health professionals. 

The broader opportunity to communicate to consumers through 

the healthcare channel by providing attractively presented and 

targeted information has also been actively pursued and, by 

early 2010, three quarters of GP surgeries nationwide were 

distributing NDC nutritional guides. 

The NDC Dairy Den Programme developed this highly 

successful Guide to Toddler Nutrition in 2009, the first of a 

developing series of booklets on nutrition for mothers that will 

be enhanced in 2010. The NDC’s approach to reaching out 

through practical and effective means was further demonstrated 

by the highly successful Health & Wellbeing Evenings, which 

were pioneered in 2008 and rolled out further in 2009. Four 

separate events, co-hosted with North Cork Co-op in Kanturk; 

Arrabawn Co-op in Claregalway; Wexford Creamery in 

Wexford; and Connacht Gold in Westport, were extremely well 

attended and gained excellent feedback from the audiences. 

Proceeds raised were donated to a local charity of the co-ops’ 

choice. 

Effective advocacy strategies should have an international 

as well as national dimension and, during 2009, the NDC 

strengthened its involvement in fora such as the Global Dairy 

Platform, European Dairy Marketing Forum and the Utrecht 

Group. Formal links were also developed with The Dairy 

Council, Great Britain through the GB Alliance. Covering 

a number of areas of strategic interest, this alliance formally 

allows for information sharing between the two bodies and was 

pivotal to the securing of EU funding for the ‘Milk in Action’ 

Programme, as a strong transnational element is a prerequisite 

of such funding. 

At home, the NDC’s partnership with the Irish Osteoporosis 

Society (IOS) remains a highly productive and mutually 

beneficial relationship. A radio campaign involving television 

presenter Craig Doyle increased awareness that osteoporosis is a 

disease affecting both men and women. Central to the campaign 

was the new 3aday.ie website, which acts as a gateway to both 

the NDC and Irish Osteoporosis Society’s websites. 

School Milk Programme 

The School Milk Programme is central to the Dairy: Food for 

Life strategy and the nationwide launch of the ‘Fresh Milk Club’ 

to the country’s 3,300 national schools in September 2009 was 

a highpoint of activity last year. With 14,807 students enrolled 

in the programme in the months September-December 2009, 

across 500 targeted schools, the goal of raising participation 

by 12% on the year earlier figure (9,967) was well exceeded 

and this success points to further opportunities for growth 


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ahead. The concept of the ‘Fresh Milk Club’ was developed 

following a period of in-depth consultation with school children, 

parents and teachers in early 2009 and comprehensive school 

information packs were sent to national schools in September 

and the website www.freshmilkclub.ie was launched. All 

important logistical support, in the form of a total of 90 fridges 

delivered to schools, as well as the provision of cooler bags to 

many others, has been central to improving the attractiveness of 

fresh milk to schools and their pupils. 

Over 400 visits of FAI liaison officers, offering coaching sessions 

and nutritional advice, helped to promote milk as central to 

an active, healthy lifestyle. In 2009, the NDC also undertook 

much of the preparatory groundwork needed to take the School 

Milk Programme to secondary schools in 2010. Supporting this, 

it worked closely with the Department of Education on the 

publication of a home economics supplementary guide to dairy 

for senior-cycle students and has explored the opportunity of 

developing osteoporosis information DVDs for both primary 

and secondary schools. The support of the School Milk Industry 

Working Group, along with the broader support of its cooperative 

partners, proved vital to the success of the School Milk 

Programme in 2009 and will continue to do so in 2010. 

Issues Management & Nutrition 

With a culture of misinformation often surrounding the 

consumption of dairy products, determined and pro-active 

Issues Management & Nutrition programmes are an essential 

foundation activity of the NDC. A front-line day-to-day 

priority, since 2008, has been to address misinformation 

in the media and broader public domain and anecdotal 

evidence suggests this has been a highly effective strategy. The 

establishment of the SNT has further allowed the NDC to draw 

effectively on the expertise of Irish academia and industry in the 

areas of food safety and nutrition. 

The recall of Irish pigmeat from supermarket shelves around 

the world in December 2008 confirmed the devastating if, 

fortunately, short-term impact a seemingly localised event can 

have on an entire sector. While the dairy industry was in no 

way connected with the recall, a concerted effort was needed 

to address broad ranging media and consumer concerns about 

safety in the aftermath. It underlined the absolute necessity of 

the full development of the NDC Issues Management Manual, 

which has been priority of the expert Issues Management 

Committee since it was established in 2008. The Issues 

Management Manual is a complex and extensive document 

which made considerable progress in 2009. This included 

the categorisation of potential issues under four headings: 1) 

farming and production methods; 2) processing; 3) marketing 

and consumers; and 4) nutrition and health. 

In total, 15 issues in the area of nutrition and health were 


identified for which relevant position statements should be 

prepared as a matter of urgency. Work continues on the manual 

in 2010, and a full review and update of work completed will 

be made available to members through the online portal later in 

the year. 

A further expression of the NDC’s commitment to nutrition 

and issues management can be seen in DN Forum, the dairy 

nutrition newsletter targeting health-care professionals, and in 

the creation of a comprehensive e-library. Both developments 

underline the NDC’s extending scope as a nutritional 

knowledge hub, further aided by its alliance with the GB 

Dairy Council and by developing links with, for example, the 

agricultural advisory body Teagasc. Close association with 

the IOS, meanwhile, remains both significant and mutually 

beneficial in this area. Collaboration on a number of projects has 

increased awareness of the value of dairy in building bone health 

among health-care professionals, policy makers and the general 

public. 

Accountability & Corporate Governance 

In keeping with its intention of being recognised as a worldclass 

advocacy and promotional agency, the NDC is confident 

that necessary progress has been made in the areas of corporate 

governance and accountability since the launch of Dairy: Food 

for Life in April 2008. With the publication of the Annual Review 

in January 2009 and 2010, as well at the Annual Report including 

the financial statements in June 2009 and, herewith, June 2010, 

the NDC seeks to give the clearest possible sense of the return 

on investment to stakeholders on all its initiatives. 

The NDC has also sought to develop its AGM into a broader 

conference-style event, communicating developments of interest 

and value to delegates. 

In 2010, the NDC will implement a comprehensive human 

resources policy in accordance with the advice and support of 

IBEC. 

Significant funding secured in late 2009 for the ‘Milk in Action’ 

Programme – involving co-op members, the Department of 

Agriculture, Fisheries and Food, and the EU – is perhaps the 

clearest expression yet that the NDC is widely recognised as an 

organisation of purpose, capability and accountability. 

‘Milk in Action’ 

‘Milk in Action’ is a three-year milk-promotion campaign 

that commenced in April 2010 and runs until 2013. Operating 

as a separate programme from the NDC’s core programmes, 

but designed to complement the Marketing & Promotion and 

School Milk Programmes in particular, it aims to link increased 

milk consumption to sporting activity in Ireland, Northern 

Ireland, England and Wales and targets young people as its 

main audience. ‘Milk in Action’ also aims to inform women of

the nutritional benefits of milk and milk products, in particular 

cheese and yoghurt, in the battle against osteoporosis. Funding 

from EU has being matched by support from Irish industry and 

Department of Agriculture, Fisheries and Food and the first 

stages of promotional activity in the form of advertising will roll 

out in September 2010. 

Looking forward 

At the mid point of 2010, the sense of uncertainty that pervaded 

the dairy industry through much of 2009 has retreated to 

a considerable degree. While such uncertainty was a live 

issue, however, important decisions were required to be 

made. With this in mind, I believe we can speak of the NDC 

as an organisation that has shown itself to be singular and 

uncompromising in its objective of driving and stimulating 

the domestic consumption of locally produced milk and dairy 

products. This record of achievement can, as was stressed 

earlier, be attributed to a clear plan of action, set out in the six 

programme areas of the Dairy: Food for Life strategy. However, 

the channels through which we advance these activities would 

be, without a dedicated team to advance them, simply ideas 

on a page. In the development and execution of the ‘Farmed 

in the Republic of Ireland’ trade mark; the launch of the 

Quality Milk Awards; the nationwide roll out of the School 

Milk Programme; and the securing of funding for the ‘Milk in 

Action’ Programme, the role of the small but dedicated team 

at the NDC has been critical. No less important has been the 

unstinting support of Chairman Dominic Cronin and the Board 

of the NDC; our dedicated expert committees; our member cooperatives; 

the Department of Agriculture, Fisheries and Food; 

Minister Brendan Smith TD; and, of course, the dairy farming 

community as a whole. Their collective support is, undoubtedly, 

the greatest single resource available to the NDC and I would 

like to express my sincere thanks to all as we fulfil the remit of 

developing a world-class organisation dedicated to delivering 

long-term benefits to our dairy industry. 

Together, we have overcome many obstacles and progressed 

activities on numerous fronts over 2009. I have no doubt we 

will continue this momentum in 2010 and, working together, 

will serve the Irish dairy industry with distinction and 

determination. 

Helen Brophy 

Chief Executive 


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REPORTS AND FINANCIAL STATEMENTS 

FOR THE YEAR ENDED 31 DECEMBER, 2009 

National Dairy Council Annual Report 2009

THE NATIONAL DAIRY COUNCIL 

Directors’ Report 

The directors present their annual Report and the Financial Statements for the year ended 31 December, 2009. 

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 14 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 the 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. 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 

The current directors of the company are: 

Mr. D. Cronin (Chairman) 

Mr. H. Corbally (Vice Chairman) 

Mr. E. Bray 

Mr. J. Cahill 

Mr. T. Corcoran 

Mr. S. Griffin 

Mr. P. Kelly 

Mr. R. Kennedy 

Mr. K. Kiersey 

Mrs. M. Purcell 

Mr. C. Ryan 

Mr. S. McAuliffe 

Mr. F. Tobin (appointed 29 January 2009) 

Mr. J. Collum (resigned 29 January 2009) 

Mr. G. Quain (resigned 18 March 2009) 

Mr. J. Hehir (appointed 18 March 2009) 

BOOKS OF ACCOUNT 

The measures taken by the directors to secure compliance with the company’s obligation to keep proper books of 

account are the use of appropriate systems and procedures and employment of competent persons. The books of 

account are kept at 28 Westland Square, Dublin 2. 

EVENTS AFTER THE BALANCE SHEET DATE 

There have been no significant events affecting the company 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: 21 April 2010 


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Statement of Directors’ Responsibilities 

Irish company law requires the directors to prepare financial statements for each financial year which give a true 

and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In 

preparing those financial statements, the directors are required to: 

• select suitable accounting policies and then apply them consistently; 

• make judgements and estimates that are reasonable and prudent; 

• 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 for the year ended 31 December 2009 

which comprise the Income and Expenditure Account, the Statement of Total Recognised Gains and Losses, 

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 auditors’ report and for no other purpose. To the fullest extent permitted 

by law, we do not accept or assume responsibility to anyone other than the company and the company’s members 

as a body, for our audit work, for this report, or for the opinions we have formed. 

Respective responsibilities of directors and auditors 

The directors are responsible for preparing the financial statements, as set out in the Statement of Directors’ 

Responsibilities, in accordance with applicable law and accounting standards issued by the Accounting Standards 

Board and published by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting 

Practice in Ireland). 

Our responsibility, as independent auditor, is to audit the financial statements in accordance with relevant legal 

and regulatory requirements and International Standards on Auditing (UK and Ireland). 

We report to you our opinion as to whether the financial statements give a true and fair view, in accordance 

with Generally Accepted Accounting Practice in Ireland, and are properly prepared in accordance with Irish 

statute comprising the Companies Acts, 1963 to 2009. We also report to you whether in our opinion: proper 

books of account have been kept by the company; and whether the information given in the Directors’ Report is 

consistent with the financial statements. In addition, we state whether we have obtained all the information and 

explanations necessary for the purpose of our audit and whether the company’s balance sheet and profit and loss 

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. 

National Dairy Council Annual Report 2009

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 2009 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 profit 

and loss 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: 21 April 2010 


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Notes 

2009 2008 

€ € 

Income 1 2,221,690 2,418,120 

Expenditure 

Direct expenses 2,837,551 2,284,136 

Establishment expenses 127,302 151,150 

Administrative expenses 198,517 329,933 

Total expenses 3,163,370 2,765,219 

Deficit on ordinary activities before taxation 2 (941,680) (347,099) 

Taxation 4 (16,744) (40,297) 

Deficit on ordinary activities after taxation (958,424) (387,396) 

Opening accumulated surplus 3,299,139 3,686,535 

Deficit on ordinary activities after taxation (958,424) (387,396) 

Retained accumulated surplus carried forward 9 2,340,715 3,299,139 

All of the results for the year derive from the continuing activities of the company. 

The financial statements were approved by the Board of Directors on 21 April 2010 and signed on its behalf by: 

DIRECTORS 


Income and expenditure account 

For the year ended 31 December, 2009


Statement of total recognised gains and losses 

For the year ended at 31 December, 2009 

Notes 


€ € 

Deficit after taxation (958,424) (387,396) 

Prior year adjustment 9 - 1,404,865 

Total recognised (deficit)/surplus since the last annual report (958,424) 1,017,469 


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16 

FIXED ASSETS 



Notes € € 

Tangible assets 5 50,339 81,881 

CURRENT ASSETS 

Debtors 6 303,320 238,088 

Bank 2,382,685 3,135,343 

2,686,005 3,373,431 

CREDITORS: (Amounts falling due within one year) 7 (395,629) (156,173) 

NET CURRENT ASSETS 2,290,376 3,217,258 

TOTAL NET ASSETS 2,340,715 3,299,139 

Represented by: 

ACCUMULATED SURPLUS 9 2,340,715 3,299,139 

The financial statements were approved by the Board of Directors on 21 April 2010 and signed on its behalf by: 

DIRECTORS 


Balance sheet 

As at 31 December, 2009

Reconciliation of operating deficit to 

net cash outflow from operating activities 


Notes € € 

Operating deficit (941,680) (347,099) 

Add back depreciation 33,002 36,309 

Increase in other debtors (65,232) (158,609) 

Increase/(decrease) in creditors 241,797 (127,847) 

Net cash outflow from operating activities (732,113) (597,246) 

Taxation 

Taxation paid (19,085) (45,943) 

Financing activities 


Cashflow statement 

For the year ended 31 December, 2009 

Payments to acquire fixed assets (1,460) (41,535) 

Decrease in cash position for the year 10 (752,658) (684,724) 


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1. ACCOUNTING POLICIES 



Notes to the financial statements 


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. 

Basis of accounting 

The financial statements have been prepared under the historical cost convention. 

Income 

Income is comprised of voluntary levies, 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. 

Expenditure 

Expenditure is accounted for on an accruals basis. 

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 profit and loss 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 2009 2008 

€ € 

The deficit before taxation is stated after charging: 

Directors’ remuneration 25,000 24,999 

Directors’ expenses 23,904 23,483 

Auditors’ remuneration 11,000 11,000 

Depreciation 33,002 36,309 

Operating leases 3,780 4,275

3. EMPLOYEES 2009 2008 

€ € 

Wages and salaries 372,547 382,854 

Redundancy costs - 109,866 

Social Welfare costs 37,791 37,390 

Pension 29,434 16,898 

439,772 547,008 

The number of employees at the year ended 31 December 2009, including two directors, was 7 (2008:7). 

4. TAXATION 


Notes to the financial statements (continued) 


The company is not liable to corporation taxation on the excess of its income over its expenditure. 

Corporation tax was paid on interest earned as follows: 


€ € 

Corporation tax @ 25% 16,744 40,297 

5. TANGIBLE ASSETS Computer Office Motor 

equipment equipment vehicles Total 

€ € € € 

Cost: 

At 1 January, 2009 40,317 35,518 68,381 144,216 

Additions 765 695 - 1,460 

At 31 December, 2009 41,082 36,213 68,381 145,676 

Depreciation: 


Charge for the year 10,271 9,053 13,678 33,002 


Net book value: 




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20 

6. DEBTORS: (Amounts falling due within one year) 2009 2008 

€ € 





Other debtors 80,689 202,856 

VAT recoverable 222,631 35,232 

303,320 238,088 

7. CREDITORS: (Amounts falling due within one year) 2009 2008 

€ € 

Trade creditors 350,740 100,763 

Corporation tax 616 2,957 

Accruals and sundry creditors 31,080 40,648 

PAYE/PRSI 13,193 11,805 

395,629 156,173 

8. PENSION 

The company operates a defined contribution pension scheme. Contributions payable in respect of the 

year ended 31 December 2009 amounted to €29,434 (2008: €16,898). There were no pension contributions 

outstanding at the year end (2008: €Nil). 

9. ACCUMULATED SURPLUS 


€ € 

Accumulated surplus at the beginning of the year 3,299,139 3,686,535 

Deficit for the year (958,424) (387,396) 

Accumulated surplus at the end of the year 2,340,715 3,299,139 

Included in the 2008 opening accumulated surplus is an amount relating to a prior year adjustment of 

€1,404,865. This prior year adjustment related to levy contributions. In prior years income from levy 

contributions was deferred for expenditure for a period of eight months from its receipt. Since 1 January 

2008, the company recognises income from levy contributions on a receipts basis in the year which the levy 

contributions relates.




10. ANALYSIS OF CHANGES IN NET FUNDS 

Opening balance Cashflow Closing balance 

€ € € 

Cash at bank and in hand 3,135,343 (752,658) 2,382,685 

11. OPERATING LEASES 

The company had annual commitments under non-cancellable operating leases, these leases were due to 

expire as follows: 


€ € 

Between two and five years – office equipment 2,600 4,485 

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 €1,597,174 (2008: €1,632,933). The total expenses claimed by these directors for 

the year ended 31 December 2009 amounted to €9,780 (2008: €8,109). The directors held six meetings during 

the year ended 31 December 2009 (2008: 7 meetings). 

13: APPROVAL OF FINANCIAL STATEMENTS 

The financial statements were approved by the Board of Directors on 21 April, 2010. 


21

22 

Eamonn Bray 

(National Milk 

Agency) 

Jackie Cahill 

(ICMSA) 

Tom Corcoran Sean Griffin 

(ICOS) (Barryroe Co-op) 

Patrick Kelly 

(Donegal 

Creameries) 

Richard Kennedy 

(IFA) 

Kevin Kiersey 

(IFA) 

Sean McAuliffe 

(North Cork 

Co-op) 

Mary Purcell 

(Centenary 

Thurles Co-op) 

John Hehir 

(Kerry Group) 

Conor Ryan Frank Tobin 

(Arrabawn Co-op) (Glanbia) 


Henry Corbally 

Vice-Chairman (Glanbia) 


Chairman (ICMSA) 

NDC Board 

December 2009

NDC Board Sub-Committee 

Marketing & Communications 

December 2009 


Chairman 

Prof. Damien 

McLoughlin 

James Burke 

(Director - Mktg 

Eamonn Bray (MD, James Burke John Hehir Patrick Kelly Development Prog., Frank Tobin 

& Associates) 

Michael Smurfit 

Graduate Business 

School) 


School Milk & Dairy Programme 



Chairman 

Philip Carroll 

(Replaced by Tom 

George Kearns 

Noel Mooney 

Corkery in October 

(Head of League, 

Eamonn Bray Frank Tobin (Secretary, National 

Mary Purcell 

John Hehir 

Conor Ryan 

2009, Department of 

Marketing and 

Dairies Association) 

Agriculture, Fisheries 

Promotion, FAI) 

& Food) 


23

24 

Dr. Pat Dillon 

(Head of Centre, Ciaran Fitzgerald 

Teagasc, 

(MD, Ciaran 

Jackie Cahill Dominic Cronin 

Sean Griffin Kevin Kiersey 

Moorepark Dairy 

Fitzgerald 

Prod. Research 

Consulting) 

Centre) 

Fiona Lalor 

(Research Asst., 

School of Public 

Health & Population 

Science, UCD) 

Catherine 

Lascurettes 

(Executive 

Secretary, IFA) 

Paula Mee 

(MD, Paula Mee 

Nutrition Consulting) 



Chairman 


Issues Management & Nutrition 


Tom Corcoran Sean McAuliffe 


Chairman 


Accountability & Corporate Governance 

December 2009

Lynda Thompson 

National Dairy Council 

Staff Organisational Chart 


Helen Brophy 

Dr Catherine Logan Tara Regan Joe Podesta 


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26 

PA/Admin 

Issues Management 

& Nutrition 


National Dairy Council 

Function Organisational Chart 


Chief Executive 

School Milk 

& Dairy Programme 

Marketing & 

Communications

28 



28 Westland Square, Dublin 2. Ireland 

Tel: +353 1 6169726 

Fax: +353 1 6169760 

www.ndc.ie

Dairy: Food for Life Annual Report 2009 - The National Dairy Council

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