1. Teagasc National Goat Conference Portlaoise Wednesday 21 st April 2016

2. Delamere Dairy and the market for Goats Milk based dairy products

3. Our Business Founded 31 years ago by Roger and Liz Sutton - with 3 goats wanting to farm Turnover 2015 - £20 million Speciality Dairy and Dairy Alternatives Branded and Private Label- UK and Export Exporting (Shanghai, Belgium offices) MD Ed Salt 12 years in the business Experienced management team – 22 employees Dedicated goats milk supply 18 longstanding co-packing partners in UK & Europe

4. Some of Our Products Fresh Goats’ Milk Fresh Goats’ Butter Fresh Goats’ Yogurts Dairy Alternatives Goats’ Cheese UHT Milk Sterilised Milk Pet Milks

5. Our Business Model 1992 we started to outsource our Production capacity 2007 we even sold our own herd of 1500 goats Now 18 longstanding co-packing partners in UK & Europe 7 dedicated contacted UK milking goat herds approx 10,000 goats Goats milk based – milk supplied by Delamere Dairy from dedicated contracted milk supply Cows milk based and Plant based drinks supplied as finished products ADVANTAGES Flexibility, speed to market No investment in stainless steel DISADVANTAGES Give up manufacturers margin

6. Our Goats Milk Supply What we look for in a good supplier Ability to develop well invested enterprise min. 800 milkers Geographical location Must adhere to Goat Farm Assurance and Welfare (Red Tractor) Good husbandry essential Must engage with Delamere Dairy and our supplier group - incl controlled, agreed growth plan Continuous improvement and efficiencies

7. Focus on…UK Goat Dairy Trade UK Goat Dairy - A Few Basics… *Mainly French- produce 450m litres goats milk annually Other goats milk based products include yogurt, butter, ice cream and pet milk 100,000 goats in UK. Approx 60,000 in 50 commercial herds (all housed) Reducing reliance in imported raw milk and curd. Supply and Demand broadly in line – easier to control small supply base £70m Approx retail value Current growth in UK market <5% Reasons for purchase: HealthMilk / Yogurt Taste / ChoiceCheese / Butter Goats%Cows Milk produced in the UK (litres)33 million0.214.3 billion (World: 636 bn) Cheese produced in the UK1600 tonnes4.4360,000 tonnes Size of UK Cheese Market? UK prod plus import *417,871 tonnes

8. UK Drinking Milk Liquid Goats Milk suppliers to UK market St Helens Farm (Kavli) Branded to Tesco, Sainsburys H Walker & Son ( Goats milk trading) Waitrose Private Label Delamere Dairy M&S Private Label, Branded to rest of UK market Other goat farm supplier groups (Cheese) Lubborn Creamery (Lactalis McLelland) Cornish Country Larder (Arla) Abergavenny Fine Foods Focus on…UK Goat Dairy Trade LitresValue Cows5.3 billion£3 billion Milk Alternatives & Health Benefits141 million£177 million Goats17 million£26 million

9. Opportunities / Threats Grow UK sales channels – loyal customer base Export – barriers being overcome Scale production up + investment from larger dairy companies. Ability to control milk supply Product innovation – anything made with cows milk can be goats milk Health of the Nation – Natural (digestible etc) – Jamie Oliver super food Meat – another income stream for the farmer Animal health issues could decimate small supply base Food scare interrupting small size of UK trade Competition from imported brands / other milk alternatives Ethical / Factory farming discussion – housed goats etc. Oversupply of milk

10. Any Questions ?