Ornua Kerrygold production line

CEO Conor Galvin told The Grocer farmers were ‘concerned about 2026’ and were set to have a ‘very, very challenged year’ due to soaring cost pressures and uncertainty in the market

Farmers are braced for a very challenging year ahead, amid ongoing geopolitical concerns, the boss of Kerrygold owner Ornua has warned.

The Irish dairy co-op’s CEO Conor Galvin this week told The Grocer farmers were “concerned about 2026” and were set to have a “very, very challenged year” due to soaring cost pressures and market uncertainty.

Dairy markets have experienced fluctuating supply levels over the past 12 months, with supply soaring and farmgate prices falling. Galvin said prices were expected “to remain under pressure, certainly for the first half of the year”.

This comes against a backdrop of years of increased costs faced by farmers, driven by the Russian invasion of Ukraine in 2022, and exacerbated by the current situation in the Middle East. 

“Some of those [elevated] costs actually never disappeared,” said Galvin. “So with the round of [recent Iran war-driven] fuel price increases, we would be acutely aware of the challenges it creates for our farmers and also for our processors, who are very energy-intensive as well.”

Galvin’s comments follow protests in the Republic of Ireland last week, where demonstrators blocked fuel depots for nearly a week – prompting the Irish government to announce €505m-worth of fuel-cost measures, including temporary fuel duty cuts, on Sunday. 

The warnings come as the business published its “very positive” results today despite a “complex year”, Galvin said.

The business reached €3.5bn in revenue, an increase of 1.6% in the 12 months to 27 December 2025. Operating profit also increased by 4.7% to €136.6m before any members’ bonuses were paid.

The results come in a year where Kerrygold witnessed strong and sustained growth and where its cheddar brand Pilgrims Choice underwent a significant rebrand accompanied by marketing campaign. 

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Galvin told The Grocer the results were a “real confirmation of our business model and our purpose”.

“Part of our purpose is to try and drive certainty and stability back to our member co ops and the dairy farmers that supply them and that’s what we do,” he said. “We have a diversified business where we operate in significant overseas markets, and we do that with B2B ingredients, and with the brands, with Kerrygold and Pilgrims Choice, and that gives more stability.

“Nothing is ever guaranteed, but it certainly allows us to continue to bring the story of Irish dairy overseas, and also to drive value from it.”

He added the business would now like to see some “lift in the dairy market” so that the returns back to dairy farmers increase and thereby “create a sustainable model on farm”.

“It does look like the second half of the year will probably be better. But I think with volatility in the world, the challenge at the moment is depending on forecasts that are long term when there’s such short-term volatility,” he explained. “In a world where costs are rising, we can ideally offset some of that costs with efficiency and make sure that we continue to drive margin for farmers.”

Galvin said Ornua was also aiming to support farmers through growing its branded sales by finding markets that “command a premium and pay it back, over and above the product prices”.

Ornua saw significant growth in the US market this year, reaching the $1bn retail sales milestone for the first time early in the year.

Additionally, last year, Ornua introduced a new strategic growth plan to 2030, supported by a new operating model. The strategy, Ornua said, would “strengthen Ornua’s leadership in premium dairy through world-class commercial execution, enabled by operational excellence and a more connected global operating model”.

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