Farm Ireland
Independent.ie

Sunday 30 April 2017

Arrabawn back to black in 2009

Martin Ryan

A turnaround of more than €3.6m in the retained profits at Arrabawn Co-op will be reported to the shareholders at their annual general meeting to be held at Nenagh tomorrow.

Despite a significant drop in sales for both the dairy and trading divisions, the society will report profits of €1.64m for last year, compared to a loss of €2.2m for 2008.

The net debt of the society has been reduced by €2.26m, to €7.1m, and shareholder funds have increased by 5.6pc, to almost €29m.

Difficult

The milk price paid to producers was down 28pc, at an average of 23.34c/l, while butterfat and protein levels were stable and the volume of milk processed dropped three million litres, to 214m litres.

Chairman, Michael Flaherty will report last year as having been the most difficult in the nine years since the enlarged society was founded.

He will tell the shareholders that the optimism, which he had expressed at last year's AGM, that milk price had bottomed out had not materialised in relation to the market, which did not deliver an upturn until October.

He will reveal to the shareholders that the society is examining sources of alternative energy to reduce the major cost to the society of fuel.

The value of dairy sales dropped by almost a quarter to €76m last year, and a similar downturn was experienced in the trading division as sales fell from €64m to €49m.

The society cut the cost of administration and operations by €1m, which is equivalent to 3pc, and wages and salaries were only marginally higher, although the number of employees increased from 193 to 206.

During the year, two defined benefit pension schemes were terminated.

Irish Independent



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