Tipperary Co-op profits rise 5% to €0.9m

TIPPERARY Co-op Creamery yesterday announced pre-tax profits of €0.9 million for 2003, on a turnover of €110 million, a 5% rise on the previous year.

During the year, the Tipperary Town based Society had a cash inflow of €2.9m, and capital expenditure of €1.8m. At year end, it had assets of €25m and minimal bank borrowings.

Chairman Seán Murray said profitability for the year had to be seen in the context of the continuing tight dairy profit margins and strong milk prices paid by the co-op. Profits were also affected by the strength of the euro against the dollar in its US business.

The co-op, the only producer of emmental cheese in Ireland, sees continued growth in its niche cheese market in Europe through its French subsidiary, Tippagral, and through the Kerrygold label in the US.

It said the co-op’s sales of emmental cheese in the US grew by 8% in 2003 with further growth projected.

Mr Murray said many difficulties were posed by the changes in intervention support prices and criticised the excessive use of cuts in export refunds that were happening in advance of the changes in support prices.

Markets had been firm for the first few months in 2004, but this was not translated into high product returns because of EU policy.

He expressed support for the Irish Dairy Board in its strong performance in marketing Irish dairy products in 2003. Tipperary Co-op supplied specialty cheese and lactic butter under the Kerrygold brand to the IDB. In 2003, the average milk supply per supplier grew by 3,000 gallons to reach a level of over 45,000 gallons. This trend is set to continue and there is widespread support for the extension of the milk restructuring scheme within the confines of the co-op area.

Mr Murray said this was vital for the continued viability of the business and preservation of the rural fabric.