DESPITE major changes in the current pattern of supply and demand on world dairy markets, the Irish Dairy Board is confident that trading will remain buoyant leading to another year of profit growth. Last year the IDB, owned by the agricultural coops, benefited from booming prices, producing record profits of nearly £21 million. Turnover rose 7.6 per cent to £1.25 billion.

The strong demand for dairy products kept the board out of the intervention system as against £11.7 million worth of intervention sales in the previous year. Sales of Kerrygold, the premier Irish branded butter on international markets, rose 6 per cent and was a major contributor to the overall result. IDB is hopeful that this sales trend will continue in the current year. Last year the board went into the South African market for the first time, selling 1,000 tonnes of butter.

IDB's chief executive, Dr Noel Cawley, remains optimistic on the profit outlook, saying that current prices are now at intervention level and should not fall further. Last year IDB spent £10 million on asset purchases and has the financial capacity to make further medium sized acquisitions.