The National Dairy Council - NDC€¦ · The National Dairy Council protects and promotes the image, quality, taste and nutritional credentials of Irish dairy. It promotes the benefi

The National Dairy CouncilAnnual Report 2015

NDC_Annual Report 2015.indd 1 22/06/2016 09:14

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.


Contents

2Chairman’s Statement

4CEO’s Statement

72015 in pictures

13NDC Reports and Financial Statements for the financial year ended 31 December 2015


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


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


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




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:



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



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



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



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.



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



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



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



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



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



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



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.)



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



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



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



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.



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



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



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



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.



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.



NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)


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


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.





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:


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 -





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.





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





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





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.





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


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


The National Dairy Councilt: +353 1 290 2451e: [email protected]

NDCIreland @NDC_ie


The National Dairy Council - NDC€¦ · The National Dairy Council protects and promotes the image, quality, taste and nutritional credentials of Irish dairy. It promotes the benefi

Documents