NDC Annual Report 2015

The National Dairy Council Annual Report 2015 NDC_Annual Report 2015.indd 1

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The National Dairy Council protects and promotes the image, quality, taste and nutritional credentials of Irish dairy. It promotes the benefits 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.

You can find out more about the work of the National Dairy Council at www.ndc.ie Find us on

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NDCIreland

@NDC_ie

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Contents

2

Chairman’s Statement

4

CEO’s Statement

7

2015 in pictures

13

NDC Reports and Financial Statements for the financial year ended 31 December 2015

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The National Dairy Council

CHAIRMAN’S STATEMENT

IRISH DAIRY ON TRACK FOR SUSTAINABLE EXPANSION Irish dairy farmers and processors are justifiably

mild Autumn which sustained our grass-based

proud of the nutritional values, sustainability and

production in to November for many farms. Spring

standards that we enjoy in Irish dairy products.

2016 is likely to see a significant increase in the number of calves born on Irish dairy farms due to

These attributes give consumers confidence in Irish

the removal of the milk quota system. I believe

dairy and have supported the success of the Irish

Ireland is on track to achieve the Food Harvest 2020

dairy sector – from farm gate to fridge – providing

target of increasing milk production levels by 50%

valuable jobs in our economy even during times of

by 2020.

recession and despite the restriction of milk quota policies which were in place up until April 2015.

Economists predicted that there is the potential to contribute €1.3 billion per year to our economy and

Exports of Irish dairy produce and ingredients were

to create 15,000 jobs if the dairy sector reaches its

valued at over €3 billion in 2014. The removal of

potential.

milk quotas in 2015 has created an expansion opportunity for our dairy sector to make a further

In the short term, this potential expansion is not

and very significant contribution to our economic

without its challenges. During 2015 global dairy

recovery and growth.

markets were down, largely driven by geopolitical events such as a slowdown in markets in China and

2015 brought the potential for a significant increase

reduced access to the Russian market.

in milk production in Ireland, supported by a

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2016 has started and continues to be one of the

Research funded by The European Commission

most challenging years of market returns for the

shows that Ireland has the lowest greenhouse

dairy sector. I, along with so many other dairy

gas emissions, or carbon footprint, per litre of milk

farming colleagues, would very much hope to see

produced in the EU (Leip et al., 2010). We are

those circumstances recover with a subsequent

continuously improving, supported by initiatives

improvement in milk price by the end of 2016.

such as the Sustainable Dairy Assurance Scheme

3

(SDAS) amongst others.

In the longer term, I believe the prospects are strong. Research and development will generate

It is important to actively promote the benefits of

opportunities and potential export growth for

the Irish dairy industry in terms of sustainability and

the sector. The industry is beginning to leverage

our contribution to local communities, the wider

innovation to develop the potential of dairy-based

economy and the environment.

products, especially in terms of life-stage nutrition.

With these post-quota opportunities for expansion, For example emerging research in the area of

we must also never lose sight of the importance

sports nutrition is revealing a number of potential

of the local market in Ireland and the core value

roles for milk and milk-based products in sports

of preserving the industry’s reputation at home.

nutrition, particularly in relation to re-hydration and

That well established reputation for quality which

muscle recovery. Areas such as whey and infant

Irish dairy enjoys with Irish consumers in the home

formula have also been the subject of R&D.

market, is at the heart of our export success.

In this post-quota context it is important to

It is essential that the NDC continues to educate

actively promote the dairy industry’s strengths

consumers about the benefits of consuming dairy

in sustainability and its contribution to local

as part of a balanced diet and continues to

communities, the wider economy and the

promote the key categories such as milk, cheese,

environment.

yogurt, butter and cream.

The Food Wise 2025 strategy is focused on

The National Dairy Council remains fully committed

developing technologies and processes which

to delivering value and playing an important part in

support a vision of ‘sustainable intensification’ and

helping the Irish dairy sector to unlock its potential.

recognises that the three pillars of sustainability – social, economic and environment – are equally

On behalf of the Board, I would like to thank CEO,

important and carry commensurate weight.

Zoë Kavanagh and her team for their dedication and commitment to the work of the NDC.

In the context of sustainability, Ireland has a number of competitive advantages, key among

I also wish to thank my fellow Board members for

them being a temperate climate which favours

their support and for giving their time and expertise

a grass-based livestock production system that is

in so many ways during the year.

more efficient and environmentally sustainable compared to alternative intensive feeding systems

Teddy Cashman

(Food Wise 2025).

Chairman

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The National Dairy Council

CEO’S STATEMENT

REPUTATION FOR EXCELLENCE IS THE FOUNDATION FOR THE GROWTH AND SUCCESS OF IRISH DAIRY In Spring 2015 the NDC published research entitled

are an increasing number of elimination diets and

‘A Trusted Reputation: The Irish Dairy Industry’s

celebrity trends actively promoting the exclusion of

Critical Asset’.

dairy.

The NDC-commissioned study identifies quality

In a crowded and complex market and media

and reputation as the foundation for the Irish

landscape which can at times perpetuate

dairy sector to build new opportunities, based on

misperceptions, the NDC will vigorously promote

innovative and premium milk-based produce.

and defend the natural goodness and excellence

Our hard-won reputation for excellence is the key

of Irish dairy.

to consumers’ trust in, and loyalty to, Irish dairy products.

Consumers need to hear the good news about Irish milk and dairy. From a nutrition perspective,

Dairy competes with many other food and drinks,

dairy plays a very important role and is among the

often supported by significant and sophisticated

staple foods in the Irish diet. Milk and milk products

global marketing resources. In addition there

provide a package of nutrients and are generally

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a low cost source of dietary

5

Specific examples during 2015 have included:

calcium and among the lowest cost sources of high-quality protein and important vitamins. A simple glass of milk, can provide us with a

Direct engagement with dietitians through sponsored symposia.

source of protein, calcium, iodine, phosphorus, potassium and vitamins B2 and B12.

The NDC draws on evidence-based nutritional expertise to underpin

Partners in producing DN Forum a science based publication for health and industry professionals.

communication with consumers and health professionals about the

Co-sponsors with Ornua of NDC &

positive role that milk and dairy

Kerrygold Quality Milk Awards and

produce can play in our lives,

with Teagasc for associated Farm

throughout our different life stages.

Walk hosted by award winners

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.

Nutritional workshops for coaches, creating awareness about the importance of nutrition and positive role that milk can play in sports

This means that any questions or misconceptions can be addressed so that consumer confidence in dairy produce is maintained; and re-affirms the place of Irish dairy in

Collaboration on initiative for secondary school students which will take place in Spring 2016.

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 Dairy The NDC actively seeks opportunities for collaboration and partnerships in ways which will built mutually beneficial relationships for Irish dairy, give stronger reach to its voice and provide extended value for NDC member funds invested in

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 scientific research and developments about milk and milk produce.

initiatives.

Supporting the work of the

We are proud to report strong

evidence-based, scientifically-

success in this area, with collaborative projects providing tremendous returns on behalf of

NDC nutrition team in providing supported information to consumers and other stakeholders such as healthcare professionals

members and project partners.

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The National Dairy Council

Established marketing and nutritional expertise

and successful way of helping to building

has enabled the NDC to pitch for and secure

awareness about the positive contribution of milk

significant funding from sources such as the EU and

and milk produce to a healthy balanced diet,

Department of Agriculture, Food & the Marine for

to extend the reach of the NDC message; and

the management of specific projects.

to provide a very strong result in return for the investment by NDC members. We are grateful to

These projects require investing in a co-funded

the Department of Agriculture, Food & the Marine

approach, with NDC members providing matching

and the European Commission for the opportunity

funds for the project budget.

to work with them on these initiatives.

Successful co-funded programmes have included

The NDC intends to continue to explore

Milk, A Force of Nature - a co-funded pan-

opportunities for collaboration and generation of

European campaign which started in 2013 with

co-funded support where programme objectives

a total budget in Ireland over the three years of

are aligned with the NDC strategy.

€814,208. It communicates positive milk messages to encourage mothers to include milk as part of

2015 was the final year of the NDC’s three year

their family diet and at various life stages.

strategy, “Irish Dairy: Sustainable & Nutritious by Nature.” During 2015 the NDC Strategy Taskforce

2015 saw the launch of the Cheese Up Your

has completed an extensive review of the strategy

Life! programme featuring ambassador Derval

and developed a new four year strategy which will

O’Rourke, with opportunities for association with

underpin the work of the NDC from 2016.

her cheese recipe book and extension of the initiative facilitated through a retail partnership with

It is important to keep the public informed of the

SuperrValu. The EU cheese programme co-funded

range of health and nutritional benefits provided by

by the dairy industry will see €720,328 spent in the

dairy products for individuals at different life-stages,

Republic of Ireland on the promotion of cheese

through engaging, evidence-based reporting of

and cheese culture.

research and innovation.

Milk Moments, is a €900,000 campaign co-funded

The NDC intends to provide a trusted voice for Irish

by the EU and Department of Agriculture, Food &

dairy based on nutritional expertise and to build

the Marine to highlight the association between

awareness about the quality of Irish dairy produce

milk and sports, as part of a healthy diet. Funding

and the role of such foods in a healthy balanced

approval was secured in 2015 for the programme

diet.

to commence in 2016.

Zoë Kavanagh Such initiatives have proven to be an important

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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.ie Photo: 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

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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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The National Dairy Council

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

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

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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.

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

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The National Dairy Council

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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The National Dairy Council

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

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

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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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The National Dairy Council

DIRECTORS AND OTHER INFORMATION

DIRECTORS

SOLICITORS

Mr. T. Cashman (Chairman)

Gleeson McGrath Baldwin

Mr. E. Carroll (Appointed 20/10/2015)

29 Angelsea Street

Mr. J. Comer

Dublin 2

Mr. P. Gibbons Mr. T. Maher

Media Lawyer

Mr. E McEnteggart

Ardeen House

Mr. P. Sheahan

10 Marine Terrace

Mr. E. Sweeney

Dun Laoghaire

Mr. J. Murphy (Vice Chairman)

Co. Dublin

Mr. J. Murray Mr. C. O’Sullivan (Appointed 04/03/2015)

Corrigan & Corrigan

Mr. S. O’Leary

3 St. Andrew Street

Mr. C. Ryan

Dublin 2

Mr. F. Tobin Mr. B. Walsh

AUDITOR

CHIEF EXECUTIVE AND SECRETARY

Deloitte Chartered Accountants and Statutory Audit Firm

Zoë Kavanagh

Deloitte & Touche House Earlsfort Terrace

REGISTERED OFFICE

Dublin 2

The Studio

BANKERS

55c Maple Avenue Stillorgan Industrial Park

AIB Bank

Co. Dublin

1 Lower Baggot Street Dublin 2

REGISTERED NUMBER AIB Bank 21650

St. Helen’s 1 Undershaft London EC3A 8AB J & B Davy Davy House 49 Dawson Street Dublin 4

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DIRECTORS’ REPORT

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.

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The National Dairy Council

DIRECTORS’ REPORT (contd.)

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

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DIRECTORS’ RESPONSIBILITIES STATEMENT

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.

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The National Dairy Council

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NATIONAL DAIRY COUNCIL We have audited the financial statements of The National Dairy Council (a company limited by guarantee and not having a share capital) for the 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 STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Reports and Financial Statements for the 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.

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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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The National Dairy Council

INCOME STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015

Restated

Income

2015

2014

Notes

â‚Ź

â‚Ź

3

3,490,454

2,923,663

Expenditure 2,850,595

2,645,482

Establishment expenses

80,673

65,844

Administrative expenses

182,947

198,136

3,114,215

2,909,462

Direct expenses

Total expenses Surplus on ordinary activities before taxation

4

376,239

14,201

Taxation

7

(275)

(311)

375,964

13,890

Surplus on ordinary activities after taxation

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

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015

Restated 2015

2014

Notes

€

€

8

6,041

5,833

9

111,457

206,438

1,565,570

1,199,312

1,677,027

1,405,750

(205,716)

(310,195)

Net current assets

1,471,311

1,095,555

NET ASSETS

1,477,352

1,101,388

1,477,352

1,101,388

Fixed Assets Tangible assets

Current Assets Debtors Bank

Creditors: (Amounts falling due within one year)

10

Represented by: ACCUMULATED SURPLUS

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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The National Dairy Council

STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015

Accumulated Notes At 31 December 2013 as previously stated Changes on transition to FRS 102 At 1 January 2014 as restated Surplus for the financial year At 31 December 2014 Surplus for the financial year

At 31 December 2015

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16

surplus

Total

€

€

1,108,203

1,108,203

(20,705)

(20,705)

1,087,498

1,087,498

13,890

13,890

1,101,388

1,101,388

375,964

375,964

1,477,352

1,477,352

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STATEMENT OF CASHFLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015

Restated 2015

2014

€

€

376,239

14,201

(1,109)

(1,241)

Depreciation

7,194

5,635

Taxation (paid)/refunded

(380)

662

95,086

(57,049)

(104,479)

164,567

372,551

126,775

1,109

1,241

Payments to acquire fixed assets

(7,402)

(270)

NET CASH FLOWS FROM INVESTING ACTIVITIES

(6,293)

971

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

Notes

RECONCILIATION OF SURPLUS ON ORDINARY ACTIVITIES BEFORE TAX TO NET CASH FLOW FROM OPERATING ACTIVITIES Surplus on ordinary activities before tax Less: interest income

Decrease/(increase) in debtors (Decrease)/increase in creditors NET CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest income

NET INCREASE IN CASH AND CASH EQUIVALENTS

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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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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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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

1,109

1,241

3,490,454

2,923,663

Interest income Total income

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

€

€

Directors’ remuneration

41,488

44,223

Directors’ expenses

20,165

22,727

The surplus before taxation is stated after charging:

Auditor’s remuneration 10,700

10,700

other non-audit services

1,750

-

Depreciation

7,194

5,635

1,109

1,241

audit of financial statements

and after crediting: Interest income

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

€

€

41,488

44,223

326

-

Aggregate emoluments paid to or receivable by directors in respect of qualifying services Compensation paid or payable, or other termination payments, in respect of loss of office to directors of the company in the financial year

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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:

Taxation charge

2015

2014

€

€

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:

Surplus for financial year before taxation

2015

2014

€

€

376,239

14,201

47,030

1,775

Surplus for financial year multiplied by standard rate of corporation tax of 12.5% (2014: 12.5%) Effects of: Net income and expenditure (47,030)

(1,775)

Higher tax rates on interest

275

311

Total tax charge for period

275

311

(not subject to taxation)/ disallowable

The National Dairy Council is chargeable to taxation on bank and other interest.

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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)

31,946

20,402

52,348

60,455

41,319

101,774

At 31 December 2015 Depreciation: At 1 January 2015 Charge for the financial year

5,504

1,690

7,194

(35,647)

(27,014)

(62,661)

30,312

15,995

46,307

At 31 December 2015

1,634

4,407

6,041

At 1 January 2015

5,429

404

5,833

On disposals

At 31 December 2015 Net book value:

In respect of prior financial year: Computer

Office

Equipment

Equipment

Total

€

€

€

65,884

41,453

107,337

-

270

270

65,884

41,723

107,607

55,088

41,051

96,139

5,367

268

5,635

60,455

41,319

101,774

5,429

404

5,833

10,796

402

11,198

Cost: At 1 January 2014 Additions At 31 December 2014 Depreciation: At 1 January 2014 Charge for the financial year

At 31 December 2014

Net book value: At 31 December 2014 At 1 January 2014

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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)

Trade creditors Accruals and sundry creditors PAYE/PRSI

Restated 2015

2014

€

€

61,926

225,820

128,938

67,994

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

€

€

78,461

138,762

78,461

138,762

190,864

293,814

190,864

293,814

Financial assets Measured at undiscounted amount receivable Other debtors (Note 9)

Financial liabilities Measured at undiscounted amount payable Trade and other payables (Note 10)

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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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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

Equity reported under previous Irish GAAP

31/12/2014

01/01/2014

€

€

1,126,307

1,108,203

(24,919)

(20,705)

1,101,388

1,087,498

Adjustments to equity on transition to FRS 102 Holiday pay accrual Equity Report under FRS 102

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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The National Dairy Council wishes to thank its member co-ops for their continued support, ensuring longterm success of NDC dairy marketing campaigns and initiatives

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.

Clรณna 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.

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The National Dairy Council t: +353 1 290 2451 e: hello@ndc.ie ndc.ie NDCIreland

NDC_Annual Report 2015.indd 34

@NDC_ie

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