Carbery, one of the State's largest food and ingredients companies, is expecting to increase production by 10-15 per cent this year in the absence of milk quotas, which were abolished at the end of last month.

The Cork-based dairy processor, which develops flavour and ingredient products for the sports nutritional and food industries, also said it is in a position to handle volume increases of up to 45 per cent.

In its annual report for last year, the group said price volatility in the market would be heavily influenced this year by post-quota milk volumes, US supply and weather conditions in New Zealand.

"Despite weakness in the key import markets of Russia and China, the general level of demand is good but it is important that global milk supply growth moderates from 2014 levels," chief executive Dan MacSweeney said.

Turnover at Carbery fell 0.5 per cent last year to €316.6 million. The group enjoyed a marginal increase in pretax profit, which rose to €10.4 million.