Co-op's results 'satisfactory'

NEWMARKET Co-op in north Cork has reported a turnover of €45.89 million for 2003 and an operating profit of €477,000 for the same period.

Turnover is down on 2002 figures (€56.4m) while profit also decreased from its 2002 level of €522,000.

Co-op chairman Maurice Noonan said that given the economic and trading factors the overall results were "satisfactory".

"Conditions in the dairy industry were once again difficult during 2003 and in particular the market for cheddar cheese which returned substantially less than the other main dairy products.

"When taken in this context and considering the competitive price paid to our suppliers for milk, the financial performance for 2003 was satisfactory."

Apart from its main business of producing cheddar cheese, Newmarket Co-op also operates a farm supply store-hardware business and a SuperValu store in the town.

The Society has also been engaged in the early stages of the development of wind farms. The projects are being developed as a joint venture with South Western Services in Bandon.

CEO Michael Cronin, who is also chairman of the Irish Dairy Board, said that the industry has been going through a difficult period.

"We face major challenges ahead, among which is the mid-term review and the potential impact it might have on milk prices and the subsequent reduction in support for the main commodity products like butter and skimmed milk powder (SMP).

"The price reductions to butter and SMP will clearly have a knock-on effect on cheddar cheese. This will create further challenges for the co-op and its milk suppliers," said Mr Cronin.

The independent co-operative has played a major role in protecting the interests of the agri-sector and the farming community in Ireland, he said.

"I envisage that this role will continue. However, the challenges we all face will mean that those involved will need to look at where there are potential synergies between co-operatives in the future that can work in the best interests or our shareholders and suppliers," he said.