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The National Dairy CouncilAnnual Report 2015
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You can fi nd out more about the work of the National Dairy Council at www.ndc.ie
Find us on NDCIreland @NDC_ie
The National Dairy Council protects and promotes the image, quality, taste and nutritional credentials of Irish dairy. It promotes the benefi ts of the dairy portfolio to the consumer as part of a balanced, healthy lifestyle while also communicating with other important audiences such as health professionals, including dietitians.
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Contents
2Chairman’s Statement
4CEO’s Statement
72015 in pictures
13NDC Reports and Financial Statements for the financial year ended 31 December 2015
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IRISH DAIRY ON TRACK FOR SUSTAINABLE EXPANSIONIrish dairy farmers and processors are justifiably
proud of the nutritional values, sustainability and
standards that we enjoy in Irish dairy products.
These attributes give consumers confidence in Irish
dairy and have supported the success of the Irish
dairy sector – from farm gate to fridge – providing
valuable jobs in our economy even during times of
recession and despite the restriction of milk quota
policies which were in place up until April 2015.
Exports of Irish dairy produce and ingredients were
valued at over €3 billion in 2014. The removal of
milk quotas in 2015 has created an expansion
opportunity for our dairy sector to make a further
and very significant contribution to our economic
recovery and growth.
2015 brought the potential for a significant increase
in milk production in Ireland, supported by a
mild Autumn which sustained our grass-based
production in to November for many farms. Spring
2016 is likely to see a significant increase in the
number of calves born on Irish dairy farms due to
the removal of the milk quota system. I believe
Ireland is on track to achieve the Food Harvest 2020
target of increasing milk production levels by 50%
by 2020.
Economists predicted that there is the potential to
contribute €1.3 billion per year to our economy and
to create 15,000 jobs if the dairy sector reaches its
potential.
In the short term, this potential expansion is not
without its challenges. During 2015 global dairy
markets were down, largely driven by geopolitical
events such as a slowdown in markets in China and
reduced access to the Russian market.
CHAIRMAN’S STATEMENT
2 The National Dairy Council
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Annual Report 2015 3
2016 has started and continues to be one of the
most challenging years of market returns for the
dairy sector. I, along with so many other dairy
farming colleagues, would very much hope to see
those circumstances recover with a subsequent
improvement in milk price by the end of 2016.
In the longer term, I believe the prospects are
strong. Research and development will generate
opportunities and potential export growth for
the sector. The industry is beginning to leverage
innovation to develop the potential of dairy-based
products, especially in terms of life-stage nutrition.
For example emerging research in the area of
sports nutrition is revealing a number of potential
roles for milk and milk-based products in sports
nutrition, particularly in relation to re-hydration and
muscle recovery. Areas such as whey and infant
formula have also been the subject of R&D.
In this post-quota context it is important to
actively promote the dairy industry’s strengths
in sustainability and its contribution to local
communities, the wider economy and the
environment.
The Food Wise 2025 strategy is focused on
developing technologies and processes which
support a vision of ‘sustainable intensification’ and
recognises that the three pillars of sustainability –
social, economic and environment – are equally
important and carry commensurate weight.
In the context of sustainability, Ireland has a
number of competitive advantages, key among
them being a temperate climate which favours
a grass-based livestock production system that is
more efficient and environmentally sustainable
compared to alternative intensive feeding systems
(Food Wise 2025).
Research funded by The European Commission
shows that Ireland has the lowest greenhouse
gas emissions, or carbon footprint, per litre of milk
produced in the EU (Leip et al., 2010). We are
continuously improving, supported by initiatives
such as the Sustainable Dairy Assurance Scheme
(SDAS) amongst others.
It is important to actively promote the benefits of
the Irish dairy industry in terms of sustainability and
our contribution to local communities, the wider
economy and the environment.
With these post-quota opportunities for expansion,
we must also never lose sight of the importance
of the local market in Ireland and the core value
of preserving the industry’s reputation at home.
That well established reputation for quality which
Irish dairy enjoys with Irish consumers in the home
market, is at the heart of our export success.
It is essential that the NDC continues to educate
consumers about the benefits of consuming dairy
as part of a balanced diet and continues to
promote the key categories such as milk, cheese,
yogurt, butter and cream.
The National Dairy Council remains fully committed
to delivering value and playing an important part in
helping the Irish dairy sector to unlock its potential.
On behalf of the Board, I would like to thank CEO,
Zoë Kavanagh and her team for their dedication
and commitment to the work of the NDC.
I also wish to thank my fellow Board members for
their support and for giving their time and expertise
in so many ways during the year.
Teddy Cashman
Chairman
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REPUTATION FOR EXCELLENCE IS THE FOUNDATION FOR THE GROWTH AND SUCCESS OF IRISH DAIRYIn Spring 2015 the NDC published research entitled
‘A Trusted Reputation: The Irish Dairy Industry’s
Critical Asset’.
The NDC-commissioned study identifies quality
and reputation as the foundation for the Irish
dairy sector to build new opportunities, based on
innovative and premium milk-based produce.
Our hard-won reputation for excellence is the key
to consumers’ trust in, and loyalty to, Irish dairy
products.
Dairy competes with many other food and drinks,
often supported by significant and sophisticated
global marketing resources. In addition there
are an increasing number of elimination diets and
celebrity trends actively promoting the exclusion of
dairy.
In a crowded and complex market and media
landscape which can at times perpetuate
misperceptions, the NDC will vigorously promote
and defend the natural goodness and excellence
of Irish dairy.
Consumers need to hear the good news about
Irish milk and dairy. From a nutrition perspective,
dairy plays a very important role and is among the
staple foods in the Irish diet. Milk and milk products
provide a package of nutrients and are generally
CEO’S STATEMENT
4 The National Dairy Council
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Annual Report 2015 5
a low cost source of dietary
calcium and among the lowest
cost sources of high-quality protein
and important vitamins. A simple
glass of milk, can provide us with a
source of protein, calcium, iodine,
phosphorus, potassium and vitamins
B2 and B12.
The NDC draws on evidence-based
nutritional expertise to underpin
communication with consumers
and health professionals about the
positive role that milk and dairy
produce can play in our lives,
throughout our different life stages.
This evidence-based approach
supported by nutritional credentials
has earned a reputation for the
NDC as the experts in dairy and
means that the NDC can provide a
trusted voice to Irish dairy.
This means that any questions or
misconceptions can be addressed
so that consumer confi dence in
dairy produce is maintained; and
re-affi rms the place of Irish dairy in
the shopping basket. Our nutritional
expertise plays an important role
in enhancing and protecting the
status and reputation of Irish dairy;
and also facilitates strategic industry
discourse.
Strategic Collaboration can Strengthen the Voice of Irish DairyThe NDC actively seeks
opportunities for collaboration and
partnerships in ways which will built
mutually benefi cial relationships for
Irish dairy, give stronger reach to its
voice and provide extended value
for NDC member funds invested in
initiatives.
We are proud to report strong
success in this area, with
collaborative projects providing
tremendous returns on behalf of
members and project partners.
Direct engagement with dietitians through sponsored symposia.
Partners in producing DN Forum a science based publication for health and industry professionals.
Co-sponsors with Ornua of NDC & Kerrygold Quality Milk Awards and with Teagasc for associated Farm Walk hosted by award winners
Nutritional workshops for coaches, creating awareness about the importance of nutrition and positive role that milk can play in sports
Collaboration on initiative for secondary school students which will take place in Spring 2016.
Supporting positive messages and initiatives about dairy consumption based on nutritional evidence.
Active networking with other organisations responsible for promoting dairy products in other countries.Collaborating on initiatives related to scientifi c research and developments about milk and milk produce.
Supporting the work of the NDC nutrition team in providing evidence-based, scientifi cally-supported information to consumers and other stakeholders such as healthcare professionals
Specifi c examples during 2015 have included:
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6 The National Dairy Council
Established marketing and nutritional expertise
has enabled the NDC to pitch for and secure
significant funding from sources such as the EU and
Department of Agriculture, Food & the Marine for
the management of specific projects.
These projects require investing in a co-funded
approach, with NDC members providing matching
funds for the project budget.
Successful co-funded programmes have included
Milk, A Force of Nature - a co-funded pan-
European campaign which started in 2013 with
a total budget in Ireland over the three years of
€814,208. It communicates positive milk messages
to encourage mothers to include milk as part of
their family diet and at various life stages.
2015 saw the launch of the Cheese Up Your
Life! programme featuring ambassador Derval
O’Rourke, with opportunities for association with
her cheese recipe book and extension of the
initiative facilitated through a retail partnership with
SuperrValu. The EU cheese programme co-funded
by the dairy industry will see €720,328 spent in the
Republic of Ireland on the promotion of cheese
and cheese culture.
Milk Moments, is a €900,000 campaign co-funded
by the EU and Department of Agriculture, Food &
the Marine to highlight the association between
milk and sports, as part of a healthy diet. Funding
approval was secured in 2015 for the programme
to commence in 2016.
Such initiatives have proven to be an important
and successful way of helping to building
awareness about the positive contribution of milk
and milk produce to a healthy balanced diet,
to extend the reach of the NDC message; and
to provide a very strong result in return for the
investment by NDC members. We are grateful to
the Department of Agriculture, Food & the Marine
and the European Commission for the opportunity
to work with them on these initiatives.
The NDC intends to continue to explore
opportunities for collaboration and generation of
co-funded support where programme objectives
are aligned with the NDC strategy.
2015 was the final year of the NDC’s three year
strategy, “Irish Dairy: Sustainable & Nutritious by
Nature.” During 2015 the NDC Strategy Taskforce
has completed an extensive review of the strategy
and developed a new four year strategy which will
underpin the work of the NDC from 2016.
It is important to keep the public informed of the
range of health and nutritional benefits provided by
dairy products for individuals at different life-stages,
through engaging, evidence-based reporting of
research and innovation.
The NDC intends to provide a trusted voice for Irish
dairy based on nutritional expertise and to build
awareness about the quality of Irish dairy produce
and the role of such foods in a healthy balanced
diet.
Zoë Kavanagh
Chief Executive
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The excellence of Irish dairy farming is highlighted throughout the year by the annual NDC & Kerrygold Quality Milk Awards. The national winners in 2015 were Kieran and Catherine O’Sullivan, from Dunmanus, Goleen, Co. Cork, who supply milk to Drinagh Co-op. Accompanied by son Cathal at the national awards ceremony in October they were presented with the coveted NDC & Kerrygold cup by hurling legend Henry Shefflin and Minister Tom Hayes T.D. The #MadeForThis consumer campaign draws on the NDC & Kerrygold Quality Milk Awards to highlight dairy farming excellence. Full details can be found at qualitymilkawards.iePhoto: Patrick Bolger
Broadcaster and designer Brendan Courtney launched the new consumer booklet Nutrition & You; 50+ Years in the NDC Dome at the National Ploughing Championships. The booklet produced by the NDC is endorsed by the INDI (Irish Nutrition & Dietetic Insitute) and covers topics such as bone and muscle health, keeping active and practical food choices. It is the third in the series of Nutrition & You consumer booklets. Photo: Dylan Vaughan
The NDC had a busy and successful three days at the National Ploughing Championships. Former rugby international Alan Quinlan joined the NDC team on day 1 in 2015 to extend the promotion of the Win With Dairy theme and the role that milk can play in sports nutrition. Photo: Dylan Vaughan
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8 The National Dairy Council
Dairy Market Demand and Quality Standards was the subject of a seminar organised by the NDC in Thurles, Co. Tipperary in April 2015. The event took place as part of National Dairy Week and was followed by a Teagasc Farm Walk hosted on the Dwan family farm in Bohernamona, Thurles, Co. Tipperary. The Dwans were the 2014 winners of the NDC & Kerrygold Quality Milk Awards.Photo: Dylan Vaughan
The NDC launched its Win with Dairy marketing campaign in Autumn 2015 to build on the association with NDC rugby ambassadors, Rob and David Kearney coinciding with the 2015 Rugby World Cup season. Photo: Patrick Bolger
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Skillery Inspired by Irish Dairy was new to Taste of Dublin in 2015. An extensive line up of chefs and food gurus took part in a series of live demonstrations which showcased the versatility and taste of Irish Dairy. Photos: Patrick Bolger
NDC ambassadors Rob Kearney, Derval O’Rourke and Dave Kearney teamed up to launch the 2015 National Dairy Week in April. National Dairy Week provided a platform to showcase the quality and versatility of our pasture based dairy farming and produce – from farm to fridge; and highlighted the versatility and nutritious benefits of dairy within our lives, as part of a healthy, balanced diet.
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The Cheese Up Your Life! Campaign ran during April with financial support from the European Union to showcase the quality and versatility of cheese by highlighting how easily it can be incorporated in our daily lives. Ambassador Derval O’Rourke launched the campaign which included distribution of Derval’s cheese recipe booklet through SuperValu retail stores nationwide. Photo: Patrick Bolger
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Between the ages of 5-7 years, 37% of girls and 28% of boys have insufficient calcium intakes. Improving attitudes to and relevance of dairy produce for children and teenagers has been a key pillar in the NDC strategy. The dairy education programme includes www.moocrew.ie for primary schools. Photo: Dylan Vaughan
The NDC partnered with leading sports organisations, such as the GAA, Camogie Association, Coaching Ireland and Limerick Sports Partnership to organise nutritional workshops for coaches, creating awareness about the positive role that milk can play in sports nutrition amongst those responsible for coaching teams including children and teenagers. Photo: Brian Gavin, Press22
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12 The National Dairy Council
The National Dairy Council partnered with the Irish Nutrition & Dietetic Institute for a specialist symposium for dietitians on ‘Sports Nutrition: The Power of Dairy’. The symposium which was attended by over 100 dietitians and their physiotherapist colleagues was officially opened by Simon Coveney T.D., Minister for Agriculture, Food & the Marine. Photo: Patrick Bolger
The Win with Dairy campaign highlighted the positive role that milk can play in sports nutrition, at whatever level you play or enjoy sports. The campaign was part of a nutrition-led strategy which embraces the versatile role of dairy throughout our life-stages. Image: Kick Advertising & Design
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Annual Report 2015 13
The National Dairy Council(A company limited by guarantee and not having a share capital)
Reports and Financial Statements for the financial year ended 31 December 2015
14 Directors and Other Information
15 Directors’ Report
17 Directors’ Responsibilities Statement
18 Independent Auditor’s Report
20 Income Statement
21 Statement of Financial Position
22 Statement of Changes in Equity
23 Statement of Cashflows
24 Notes to the Financial Statements
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14 The National Dairy Council
DIRECTORS
Mr. T. Cashman (Chairman)
Mr. E. Carroll (Appointed 20/10/2015)
Mr. J. Comer
Mr. P. Gibbons
Mr. T. Maher
Mr. E McEnteggart
Mr. P. Sheahan
Mr. E. Sweeney
Mr. J. Murphy (Vice Chairman)
Mr. J. Murray
Mr. C. O’Sullivan (Appointed 04/03/2015)
Mr. S. O’Leary
Mr. C. Ryan
Mr. F. Tobin
Mr. B. Walsh
CHIEF EXECUTIVE AND SECRETARY
Zoë Kavanagh
REGISTERED OFFICE
The Studio
55c Maple Avenue
Stillorgan Industrial Park
Co. Dublin
REGISTERED NUMBER
21650
SOLICITORS
Gleeson McGrath Baldwin
29 Angelsea Street
Dublin 2
Media Lawyer
Ardeen House
10 Marine Terrace
Dun Laoghaire
Co. Dublin
Corrigan & Corrigan
3 St. Andrew Street
Dublin 2
AUDITOR
Deloitte
Chartered Accountants and Statutory Audit Firm
Deloitte & Touche House
Earlsfort Terrace
Dublin 2
BANKERS
AIB Bank
1 Lower Baggot Street
Dublin 2
AIB Bank
St. Helen’s 1 Undershaft
London EC3A 8AB
J & B Davy
Davy House
49 Dawson Street
Dublin 4
DIRECTORS AND OTHER INFORMATION
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Annual Report 2015 15
The Board of Directors present their annual report, together with the financial statements for the financial
year ended 31 December 2015.
COMPANIES ACT 2014
Under the Companies Act 2014, the company is deemed to be a Company Limited by Guarantee (CLG).
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 financial year and the state of affairs of the company are set out on pages 20 and 21
respectively.
REVIEW OF BUSINESS
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.
As part of the NDC’s Strategy, it is anticipated the level of funding from Europe will increase significantly over
the coming years. In order to best leverage the EU opportunity, the NDC has had to build up its reserves to
facilitate the cash flow requirements associated with running more EU Programmes and to demonstrate the
necessary financial capacity to obtain the additional funding.
RISKS AND UNCERTAINTIES
The main risk facing the company during the financial year and anticipated in future years is the receipt of
levy contributions and maintaining sufficient reserves to allow the entity operate efficiently and effectively.
GOING CONCERN
The directors have a reasonable expectation that the company has adequate resources to continue in
operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in
preparing the annual financial statements.
Further details regarding the adoption of the going concern basis can be found in note 1 to the financial
statements.
DIRECTORS’ REPORT
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16 The National Dairy Council
DIRECTORS AND SECRETARY
The current members of the Board of Directors and the company secretary are set out on page 14.
On 4 March 2015, Con O’Sullivan was appointed as director. On 25 August 2015, Timothy Cashman replaced
Jackie Cahill as Chairman, John Murphy replaced Timothy Cashman as Vice Chairman and Jackie Cahill
resigned as director. On 20 October 2015, Eamonn Carroll was appointed as director.
ACCOUNTING RECORDS
The measures that the directors have taken to secure compliance with the requirements of sections 281 to
285 of the Companies Act 2014 with regard to the keeping of accounting records, are the engagement of
appropriately qualified accounting personnel and the maintenance of computerised accounting systems.
The company’s accounting records are maintained at the company’s registered office at The Studio, 55c
Maple Avenue, Stillorgan Industrial Park, Co. Dublin.
EVENTS AFTER THE BALANCE SHEET DATE
There have been no significant events affecting the financial statements since the financial 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, Chartered Accountants and Statutory Audit Firm, continue in office in accordance
with Section 383(2) of the Companies Act 2014.
Approved by the Board and signed on its behalf by:
Timothy Cashman John Murphy
Director Director
25 April 2016
DIRECTORS’ REPORT (contd.)
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Annual Report 2015 17
The directors are responsible for preparing the directors’ report and the financial statements in accordance
with the Companies Act 2014 and the applicable regulations.
Irish company law requires the directors to prepare financial statements for each financial year. Under the
law, the directors have elected to prepare the financial statements in accordance with FRS 102 The Financial
Reporting Standard applicable in the UK and Republic of Ireland (“relevant financial reporting framework”).
Under company law, the directors must not approve the financial statements unless they are satisfied that
they give a true and fair view of the assets, liabilities and financial position of the company as at the financial
year end date and of the profit or loss of the company for the financial year and otherwise comply with the
Companies Act 2014.
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;
• state whether the financial statements have been prepared in accordance with the applicable
accounting standards, identify those standards, and note the effect and the reasons for any material
departure from those standards; 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 ensuring that the company keeps or causes to be kept adequate
accounting records which correctly explain and record the transactions of the company, enable at
any time the assets, liabilities, financial position and profit or loss of the company to be determined with
reasonable accuracy, enable them to ensure that the financial statements and directors’ report comply
with the Companies Act 2014 and enable the financial statements to be audited. They are also responsible
for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities. The directors are responsible for the maintenance and integrity of
the corporate and financial information included on the company’s website.
DIRECTORS’ RESPONSIBILITIES STATEMENT
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18 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 financial year ended 31 December 2015 which comprise the Income
Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of
Cashflows and the related notes 1 to 16. The relevant financial reporting framework that has been applied in
their preparation is the Companies Act 2014 and FRS 102 The Financial Reporting Standard applicable in the
UK and Republic of Ireland (“relevant financial reporting framework”).
This report is made solely to the company’s members, as a body, in accordance with Section 391 of the
Companies Act 2014. 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 Directors’ Responsibilities Statement, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view and
otherwise comply with the Companies Act 2014. Our responsibility is to audit and express an opinion on the
financial statements in accordance with the Companies Act 2014 and International Standards on Auditing
(UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards
for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTSAn 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 financial year ended 31 December 2015 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 of the assets, liabilities and financial position of the company as at 31
December 2015 and of the profit for the financial year then ended; and
• have been properly prepared in accordance with the relevant financial reporting framework and, in
particular, with the requirements of the Companies Act 2014.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NATIONAL DAIRY COUNCIL
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Annual Report 2015 19
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NATIONAL DAIRY COUNCIL (contd.)
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY THE COMPANIES ACT 2014
• We have obtained all the information and explanations which we consider necessary for the purposes of our audit.
• In our opinion the accounting records of the company were sufficient to permit the financial statements to be
readily and properly audited.
• The financial statements are in agreement with the accounting records.
• 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 Act 2014 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
25 April 2016
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20 The National Dairy Council
INCOME STATEMENTFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
Restated
2015 2014
Notes € €
Income 3 3,490,454 2,923,663
Expenditure
Direct expenses 2,850,595 2,645,482
Establishment expenses 80,673 65,844
Administrative expenses 182,947 198,136
Total expenses 3,114,215 2,909,462
Surplus on ordinary activities before taxation 4 376,239 14,201
Taxation 7 (275) (311)
Surplus on ordinary activities after taxation 375,964 13,890
All of the results for the current and prior financial year derive from the continuing activities of the company.
All recognised gains and losses for the current and prior financial year are included in the income and
expenditure account.
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Annual Report 2015 21
STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2015
Restated
2015 2014
Notes € €
Fixed Assets
Tangible assets 8 6,041 5,833
Current Assets
Debtors 9 111,457 206,438
Bank 1,565,570 1,199,312
1,677,027 1,405,750
Creditors: (Amounts falling due within one year) 10 (205,716) (310,195)
Net current assets 1,471,311 1,095,555
NET ASSETS 1,477,352 1,101,388
Represented by:
ACCUMULATED SURPLUS 1,477,352 1,101,388
The financial statements were approved and authorised for issue by the Board of Directors on 26 April and
signed on its behalf by:
Timothy Cashman John Murphy
Director Director
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22 The National Dairy Council
STATEMENT OF CHANGES IN EQUITYFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
Accumulated
surplus Total
Notes € €
At 31 December 2013 as previously stated 1,108,203 1,108,203
Changes on transition to FRS 102 16 (20,705) (20,705)
At 1 January 2014 as restated 1,087,498 1,087,498
Surplus for the financial year 13,890 13,890
At 31 December 2014 1,101,388 1,101,388
Surplus for the financial year 375,964 375,964
At 31 December 2015 1,477,352 1,477,352
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STATEMENT OF CASHFLOWSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
Restated
2015 2014
Notes € €
RECONCILIATION OF SURPLUS ON ORDINARY
ACTIVITIES BEFORE TAX TO NET CASH FLOW FROM
OPERATING ACTIVITIES
Surplus on ordinary activities before tax 376,239 14,201
Less: interest income (1,109) (1,241)
Depreciation 7,194 5,635
Taxation (paid)/refunded (380) 662
Decrease/(increase) in debtors 95,086 (57,049)
(Decrease)/increase in creditors (104,479) 164,567
NET CASH FLOWS FROM OPERATING ACTIVITIES 372,551 126,775
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 1,109 1,241
Payments to acquire fixed assets (7,402) (270)
NET CASH FLOWS FROM INVESTING ACTIVITIES (6,293) 971
NET INCREASE IN CASH AND CASH EQUIVALENTS 366,258 127,746
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 1,199,312 1,071,566
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 1,565,570 1,199,312
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24 The National Dairy Council
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
1. ACCOUNTING POLICIES
The principal accounting policies are summarised below. They have all been applied consistently
throughout the financial year and to the preceding year.
General Information and Basis of Accounting
The National Dairy Council is a company incorporated in Ireland under the Companies Act 2014. The
address of the registered office is given on page 14. The nature of the company’s operations and its
principal activities are set out in the directors’ report on pages 15-16.
The financial statements have been prepared under the historical cost convention, and in accordance
with the Companies Act 2014 and Financial Reporting Standard 102 (FRS 102) issued by the Financial
Reporting Council.
The prior year financial statements were restated for material adjustments on adoption of FRS 102 in the
current financial year. For more information see note 16.
The functional currency of The National Dairy Council is considered to be euro because that is the
currency of the primary economic environment in which the company operates.
Going Concern
The company’s business activities, together with the factors likely to affect its future development,
performance and position are set out in the directors’ report. The directors have a reasonable
expectation that the company has adequate resources to continue in operational existence for the
foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the
annual financial statements.
Financial Instruments
Financial assets and financial liabilities are recognised when the company becomes a party to the
contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual
arrangements entered into. An equity instrument is any contract that evidences a residual interest in the
assets of the company after deducting all of its liabilities.
Financial assets and liabilities
All financial assets and liabilities are initially measured at transaction price (including transaction
costs), except for those financial assets classified as at fair value through profit or loss, which are initially
measured at fair value (which is normally the transaction price excluding transaction costs), unless the
arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction,
the financial asset or financial liability is measured at the present value of the future payments
discounted at a market rate of interest for a similar debt instrument.
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Annual Report 2015 25
Financial assets and liabilities are only offset in the statement of financial position when, and only when
there exists a legally enforceable right to set off the recognised amounts and the company intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from
the financial asset expire or are settled, b) the company transfers to another party substantially all of the
risks and rewards of ownership of the financial asset, or c) the company, despite having retained some,
but not all, significant risks and rewards of ownership, has transferred control of the asset to another
party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged,
cancelled or expires.
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 at the rates shown below which are
estimated to reduce the assets to their residual values of Nil by the end of their expected useful lives.
Office equipment 25% per annum
Computer equipment 25% per annum
Pension
The company operates a defined contribution pension scheme. Contributions payable to the scheme
are charged to the income and expenditure account in the period to which they relate.
Taxation
The company is exempt from Income Taxation in respect of its trading activities. Passive income, if any,
(such as deposit interest) remains taxable.
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26 The National Dairy Council
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the company’s accounting policies, which are described in note 1, the directors
are required to make judgements, estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised if the
revision affects only that period or in the period of the revision and future periods if the revision affects
both current and future periods.
Information about critical judgements in applying accounting policies that have the most significant
effect on the amounts recognised in the financial statements is included in the accounting policies and
the notes to the financial statements.
3. INCOME
2015 2014
€ €
An analysis of the company’s turnover
is as follows:
Voluntary levy 3,105,641 2,649,434
Irish Dairy Board Co-operative 110,000 115,475
Grant income 225,540 132,313
Other income 48,164 25,200
Interest income 1,109 1,241
Total income 3,490,454 2,923,663
All income, apart from European Union Grant income of €225,540 (2014: €132,313), arose in the Republic
of Ireland.
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
4. SURPLUS ON ORDINARY ACTIVITIES BEFORE TAXATION
2015 2014
€ €
The surplus before taxation is stated after charging:
Directors’ remuneration 41,488 44,223
Directors’ expenses 20,165 22,727
Auditor’s remuneration
audit of financial statements 10,700 10,700
other non-audit services 1,750 -
Depreciation 7,194 5,635
and after crediting:
Interest income 1,109 1,241
5. STAFF NUMBERS AND COSTS Restated
2015 2014
€ €
Wages and salaries 428,880 436,053
Social Welfare costs 44,546 45,410
Pension (Note 12) 29,251 31,968
502,677 513,431
The average monthly number of employees for the financial year was 8 (2014: 9).
The number of employees at the financial year ended 31 December 2015, including ten directors,
was 16 (2014: 16).
6. DIRECTORS REMUNERATION
2015 2014
€ €
Aggregate emoluments paid to or receivable
by directors in respect of qualifying services 41,488 44,223
Compensation paid or payable, or other
termination payments, in respect of loss of
office to directors of the company in the
financial year 326 -
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28 The National Dairy Council
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
7. TAXATION
Based on the surplus for the financial year: 2015 2014
€ €
Taxation charge 275 311
The effective tax rate for the financial year is lower than the standard rate of corporation tax in Ireland,
which is 12.5%. The differences are explained below:
2015 2014
€ €
Surplus for financial year before taxation 376,239 14,201
Surplus for financial year multiplied by standard
rate of corporation tax of 12.5% (2014: 12.5%) 47,030 1,775
Effects of:
Net income and expenditure
(not subject to taxation)/ disallowable (47,030) (1,775)
Higher tax rates on interest 275 311
Total tax charge for period 275 311
The National Dairy Council is chargeable to taxation on bank and other interest.
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Annual Report 2015 29
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
8. TANGIBLE ASSETS Computer Office
Equipment Equipment Total
€ € €
Cost:
At 1 January 2015 65,884 41,723 107,607
Additions 1,709 5,693 7,402
Disposals (35,647) (27,014) (62,661)
At 31 December 2015 31,946 20,402 52,348
Depreciation:
At 1 January 2015 60,455 41,319 101,774
Charge for the financial year 5,504 1,690 7,194
On disposals (35,647) (27,014) (62,661)
At 31 December 2015 30,312 15,995 46,307
Net book value:
At 31 December 2015 1,634 4,407 6,041
At 1 January 2015 5,429 404 5,833
In respect of prior financial year:
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 financial 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
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30 The National Dairy Council
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
9. DEBTORS: (Amounts falling due within one year) 2015 2014
€ €
Other debtors 78,461 138,762
VAT recoverable 32,873 67,658
Corporation tax 123 18
111,457 206,438
10. CREDITORS: (Amounts falling due within one year) Restated
2015 2014
€ €
Trade creditors 61,926 225,820
Accruals and sundry creditors 128,938 67,994
PAYE/PRSI 14,852 16,381
205,716 310,195
11. FINANCIAL INSTRUMENTS
The carrying values of the company’s financial assets and liabilities are summarised by category below:
2015 2014
€ €
Financial assets
Measured at undiscounted amount receivable
Other debtors (Note 9) 78,461 138,762
78,461 138,762
Financial liabilities
Measured at undiscounted amount payable
Trade and other payables (Note 10) 190,864 293,814
190,864 293,814
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
12. PENSION
The company operates a defined contribution pension scheme. Contributions payable in respect of the
financial year ended 31 December 2015 amounted to €29,251 (2014: €31,968). There were no pension
contributions outstanding at the financial year end (2014: €Nil).
13. 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.
Disclosure of Bank guarantees:
The company has entered into bank guarantees in the normal course of business. The amount
outstanding at the balance sheet date was €211,798 (2014: €160,744).
14. 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 €2,526,863 (2014:
€2,029,014). The total expenses claimed by these directors for the financial year ended 31 December
2015 amounted to €12,288 (2014: €13,953). The directors held 6 meetings during the financial year ended
31 December 2015 (2014: 6 meetings).
Key Management Personnel
The total remuneration for key management personnel for the period totalled €230,955 (2014: €221,349).
15. EVENTS AFTER THE BALANCE SHEET DATE
There have been no significant events affecting the financial statements since the financial year end.
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32 The National Dairy Council
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
16. EXPLANATION OF TRANSITION TO FRS 102
This is the first year the company has presented its financial statements under Financial Reporting
Standards 102 (FRS 102) issued by the Financial Reporting Council. The following disclosures are required
in the year of transition. The last financial statements under previous Irish GAAP were for the year
ended 31 December 2014 and the date of transition to FRS 102 was therefore 1 January 2014. As a
consequence of adopting FRS 102, a number of accounting policies have been changed to comply
with that standard. The wording of note 1 has been amended to comply with FRS 102 and note 5 has
been amended to show restated 2014 figures.
Reconciliation of Equity 31/12/2014 01/01/2014
€ €
Equity reported under previous Irish GAAP 1,126,307 1,108,203
Adjustments to equity on transition to FRS 102
Holiday pay accrual (24,919) (20,705)
Equity Report under FRS 102 1,101,388 1,087,498
Reconciliation of surplus for 2014
€
Surplus for the financial year under previous Irish GAAP 18,104
Holiday pay charged in year (4,214)
Surplus for the financial year under FRS 102 13,890
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Bainne Codladh Ltd.
Arrabawn Co-operative Society Ltd.
Aurivo Co-operative Society Ltd.
Bandon Co-operative Agricultural & Dairy Society
Barryroe Co-operative Ltd.
Boherbue Co-operative Ltd.
Callan Co-operative Agricultural & Dairy Society Ltd.
Centenary Thurles Co-operative Society Ltd.
Clóna Dairy Products Ltd.
Drinagh Co-operative Ltd.
Drogheda Producers Co-operative Ltd.
Fealesbridge & Headleys Bridge Co-operative Dairy Society Ltd.
Glanbia Ingredients Ireland Ltd.
Kerry Co-operative Creameries Ltd.
Kill Co-operative Agricultural & Dairy Society Ltd.
LacPatrick Dairies (ROI) Ltd.
Lee Strand Co-operative Creamery Ltd.
Lisavaird Co-operative Creamery Ltd.
Mullinahone Co-operative Dairy Society Ltd.
Newtownsandes Co-operative Dairy Society Ltd.
North Cork Co-operative Creameries Ltd.
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
NDC_Annual Report 2015.indd 33 22/06/2016 09:15
The National Dairy Councilt: +353 1 290 2451e: [email protected]
NDCIreland @NDC_ie
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