Positive year for co-op despite figures

DESPITE operating profit and turnover being down, North Cork Co-op Creameries has reported a good performance for last year in difficult trading conditions.

The co-op’s annual report and accounts for 2005 show an operating profit of €238,000, down from €488,000 the previous year, and a slight decrease in turnover from €19.8 million to €19.1m.

Chairman John Ahern said the society had experienced another good year, despite the difficult trading conditions, a continued decline in returns for dairy products and atrocious weather conditions during the peak milk production period.

The EU, in line with its policy of reducing dairy subsidies, dismantled casein manufacturing support during the past season by 80%.

He said the outlook for casein in 2006 is uncertain, but it is hoped prices will stabilise over the coming months.

Butter prices have also fallen by €203 per tonne.

Mr Ahern said significant ongoing change is occurring in dairy markets, arising from the reduction in EU supports as a consequence of the EU mid-term review.

Energy costs continue to inflate and the finalisation of the new nitrate regulations and their impact on intensive farming are a serious cause for concern.

General manager Sean McAuliffe said stores trading experienced a slight increase during the past year.

The co-op issued bonus shares to shareholders who purchased feed and fertilisers from its stores.

It is paying a dividend of 5% on share capital and will also pay a cash bonus on all milk supplied in April. This equates to 1.6 cent per gallon on last year’s supply.