DRINAGH CO-OP has seen sales slip 10 per cent from last year with building supplies being hit the hardest.

The dairy and agri-business co-operative was established more than 80 years ago, has 11 branches throughout west Cork and employs 160 staff.

Chief executive Joe O’Sullivan says building supplies sales are down by between 30 and 40 per cent.

Meanwhile, retail and hardware sales have dipped 15 per cent from last year but the company’s animal feed mill has held up well and produced similar returns to 2008.

The firm recently completed the redevelopment of the Skibbereen retail centre, a project that cost several million euro over the past few years.

Mr O’Sullivan says the development was driven by demand and aims to maintain market share.

In order to cut costs the company has also reduced overtime hours and streamlined transport to be more efficient.

“Every aspect of the cost base we have attempted to cut where possible,” says Mr O’Sullivan.

The company has so far avoided having to make any staff redundant.“We may have to, but the main priority is to keep the business going as we are. We may have to cut numbers later.”

He says the biggest challenge facing the operation is weathering the current storm.

“We have to ride out this tough patch, pay the bills and get through it. Dairy farming and dairy production will continue to be an important economic activity in Ireland and we have a competitive advantage,” he says. “We will get through this recession and we will come out at the other side.”

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