Arrabawn on course to announce €3m profits
Arrabawn Co-op is on course to announce retained profits of €3m for 2014, the society's annual accounts show.
The impressive profits were recorded despite Arrabawn paying an average of 38.27c/l last year, which was one of the country's top milk prices.
At the co-op's AGM last year, farmers strongly criticised the milk price paid by the society in 2013.
In response, management said investment in the dairy's processing facilities would deliver returns in 2014 and the co-op gave a commitment to pay "a competitive milk price" for the year.
Over the past five years, Arrabawn has spent €15.7m in improving efficiency and growing capacity, and plans are on schedule for the completion of a natural gas connection over the coming weeks.
Arrabawn processed 310m litres of milk in 2014, an 8pc increase on 2013 and up from 248m litres in 2012. A further increase in throughput is forecast for this year.
Operating profits of €4.4m will be announced to the AGM for 2014, with gross profit up by €2.5m (5pc) to €48.5m, and retained profits of €3m.
Net debt at year end, at €9.25m, was down €880,000, and total capital and reserves have jumped from €37.5m to €41.9m, the results will show.