Arrabawn Co-op earns profit of €238,000

Arrabawn Co-operative Society generated an operating profit of €238,000 in 2006, compared with a loss of €2 million the previous year, the co-op's annual meeting in Portumna, Co Galway, heard yesterday.

Turnover for the year was €132 million, up from €121 million the previous year, and retained profit, after exceptional items, interest, other income and tax, was €2.55 million. This compared with a loss of €0.6 million the previous year.

The society, which was formed in April 2001 with the merger of Nenagh Co-operative and Midwest Farmers Co-operative, manufactures dairy products, food ingredients and feed compounds.

Chairman Patrick McLoughlin said the society's consolidated balance sheet remained strong with total shareholders' funds amounting to €26.4 million, an increase of €2.8 million on 2005.

He said the liquid milk division had operated well during the year and that milk sales were being maintained in a difficult market where there was strong competition from cheap imported milk.

Calling on shareholders and milk suppliers to support Arrabawn products in their local retailers, he said the launch of a new yogurt drink, Probody, had gone very well and that consumer reaction was very encouraging.

In the dairy manufacturing division Mr McLoughlin said the margin was poor between milk price and product price, although it had improved in the second half of the year.

He confirmed that Arrabawn had received approval for €6.8 million of grant aid on future expenditure of €17 million under the Government's Dairy Fund Grant scheme.

Mr McLoughlin said the stores division had a very successful year, with volume increases in hardware, feed and fertilisers.

While development plans were put on hold because of the acquisition of Greenvale, they would be back in place in the coming year.

Mr McLoughlin also said that the purchase of the Greenvale plant in Thurles would help improve operating efficiencies in the feedstuff sector and, through the Gowla brand, the co-op had gained entry to the growing horse feed sector.