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Aaron Forde

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� Connacht Gold profile,

� Plans post 2015

Milk price outlook� Milk price outlook

� Opportunities in the sector

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� Sales of �350-�400m

� 726 people

Four operating businesses� Four operating businesses

� Investments & JV

� 52 sites across west & north west

� Exporting to 20 countries

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� To enhance the lives of our members, customers , colleagues and the communities in which we operate in a sustainable way.

� Trust� Team� Value� Will to win

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� Consumer Foods� 90m litres fresh milk� No 2 butter brand – fastest growing� Exports to EU & USA� Exports to EU & USA3 sites, Sligo , Killygordon & Achonry�80m sales

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200

250

300

280Million Litres

•Connacht Gold / Donegal now strong No. 2•Greater Opportunity to expand business

0

50

100

150 86

35 28 18

Glanbia Connacht Gold Arrabawn Clona Wexford

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� Agribusiness� 41 Retail stores� 12 garden centres� Feedmill� Feedmill

DIY Plumbing Electrical Household

Hardware Builders Providers

Pet Care Agri Supplies

Fuel Paint & Paint Acces

Clothing & Footwear

Garden Centres

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� Dairy Ingredients� 280m litre milk pool� 300m litre capacity� Gross plant investment �100m� Gross plant investment �100m� Butter , FFMP (Casein, Whey, SMP, FCMP)

� 1000 milk suppliers � 10 counties� 50 NI suppliers

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Volume Drivers•Product (Commodity) •Price

Value Drivers•Kerrygold Lactic Butter•Specialised on FFMP

DIFFERENTIATEDPRODUCT

Basic Product Mix Value-Added Mix

High Worth Drivers•Kerrgold Lactic Butter•Ingredient Powder Portfolio

BASIC / STANDARD PRODUCT

SPECIALISEDPRODUCT

ButterPowder

•Customer Service •Beo Brand•Innovation•Specialised customer solutions •Business Development

Current Arena

Present1972 Future

•Customer Solutions•Beo Brand•Innovation & Creativity•Customer Insights / Intimacy•Manufacturing flexibility

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� Dairy Ingredients� Peak processing requirement going from 8m lpw

to 10m lpw

Expectation Gap

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How will the extra volume be

absorbed?

Gap

Process all the milk at

peak ..... But do it at a premium!

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� Capacity investment decisions post-2015 crucial for Dairy Ireland� We operate a number of collaborative partnerships with neighbours.� Connacht Gold 2010 supplier survey …. 20%+ growth expectationsgrowth expectations� Suppliers expect processing and marketing of that additional supply� Enough capacity up to 2015 for own volume plus some from outside� Recent investments plus lean gains mean no immediate investment requirement.

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� Examining ‘share standard’

� Linked to supply / trade

� Funding of expansion� Funding of expansion

� Equity/debt mix

� Milk pricing models

� Manage volatility

West Africa

Middle East Afghanistan

Pakistan

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Costa RicaNigeria

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Bulk Bags 25kg Retail Packaging

• Sachets – 15g & 20g• Cartons – 150 x 15g

& 300x 20g

• Instant BeoMilk• Regular BeoMilk

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� Near term firming in pricing- Supply /Demand balance & sentiment improving

� Medium term outlook good – Demand growth� Medium term outlook good – Demand growth

� Post 2015 volatility – Post Quota adjustment

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� Growth in our chosen sectors� Fuelled by growth in milk supply� Growing population regions� Growing nutritional requirements� Growing nutritional requirements� Growing target consumers

� Continue to grow our domestic businesses –organically and by acquisition or partnership

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POSITION 2004 2005 2006 2007 2008 2009 2010 2011

NET GROSS

PARTICIPANTS

139

13

129

13

1010

13

78

13

1213

14

1213

14

78

13

1010

13

AVERAGE 27.14 26.62 25.86 32.80 32.09 22.36 29.14 33.59

Connacht Gold Performance

AVERAGE PRICE

GAP (GROSS)

GAP (NET)

27.14

0.37

0.84

26.62

0.25

0.88

25.86

0.64

1.02

32.80

0.16

0

32.09

2.44

2.21

22.36

1.85

1.3

29.14

0

.14

33.59

0.71

.63

Connacht Gold Price

26.77 26.37 25.22 32.64 29.88 21.06 29.00 32.88

SPREAD 2004 2005 2006 2007 2008 2009 2010 2011

Top-Bottom

1.33 1.39 2.73 2.62 5.25 3.33 3.15 2.62Bottom

CPL

AverageOf

4 Co-ops Net

24.89 24.00 31.48 29.66 20.94 28.23 32.25