Irish dairy co-operative Ornua has announced an operating profit up 14.8% for last year.

The group also said its Kerrygold brand is now number one in Germany and number two in the US market.

It said some 2.6 million packets of butter are sold each week.

Ornua exports Irish produce to over 110 countries around the world.

While €18m of a product brand premium was paid to members for product sold through Kerrygold.

It saw a strong trading performance in 2018, with group turnover reaching €2.1bn and an operating profit of €40.4m.

It also revealed that construction is underway on a 110,000 square foot, state-of-the-art cheese production facility in Spain.

The co-op said accelerated growth in Germany has meant Kerrygold Butter is "the fastest selling product of all food and drink brands in the German retail market."

Image: Kerrygold

"Kerrygold enjoyed 25% volume growth in the US, the ninth consecutive year of double-digit volume growth.

"Today, Kerrygold Butter is the number two butter brand nationally with US consumers purchasing 2.6 million packets of the iconic gold foil each week."

The group sold some 3.4 billion litres of milk globally last year.

On Brexit, the group said: "Planning for an event where the outcomes are still unclear has been a significant challenge.

"The primary focus has been working closely with key UK customers and suppliers to ensure security of supply and to minimise the short-term impacts on our collective businesses.

"The UK remains a key strategic market for Ornua and any change in the status quo will create competitive challenges for Irish dairy exports.

"Ornua has developed sales channels across a diverse range of markets and will continue to invest to minimise the potential impacts of any Brexit deal."

Kerrygoldstrasse, Kerrygold Street in Germany, where Kerrygold Butter sells faster than all food and drink brands on the German retail market | Image: Kerrygold

Ornua CEO John Jordan said: "We are pleased to report a strong trading performance for 2018, driving a further uplift on the record growth of 2017.

"This strong performance was achieved against a challenging global environment characterised by highly volatile butter prices, drought conditions in Europe, economic uncertainty due to Brexit and global trade wars."

"Our key focus for 2019 is to drive growth for our full brand portfolio and food ingredients businesses across our 110 markets and to continue to deliver value for the 14,000 dairy farmers we represent."