Arrabawn says 2009 toughest year yet

ARRABAWN never faced such tough trading conditions since it commenced business nine years ago as it did in 2009, shareholders were told at the co-op’s annual general meeting in Nenagh, Co Tipperary, yesterday.

Arrabawn reported €1.87 million profit before tax for 2009, compared with a pre-tax loss of €2.033m in 2008. Operating profit was €1.26m before exceptional items, compared with a loss of €1.6m in 2008.

Overall turnover of €125.8m was down from €165m in 2008. Dairy division turnover of €76.35m was down from €100.8m, driven by reductions in world dairy product prices.

The co-op’s trading division turnover was €49.5m, down from €64.2m in 2008, due to lower feed and fertiliser prices. Net debt was reduced by €2.26m to €7.1m and shareholder funds rose 5.6% to €28.9m.

Co-op chairman Michael Flaherty said the recession affecting consumer purchasing patterns led to more difficult market conditions for milk and dairy products in 2009 and resulted in a drop in retail business in key areas.

Mr Flaherty said that despite the dreadful weather there was a significant reduction in the volume of feed used on farms in 2009.

“If nothing seriously damaging happens on the weather front, we are unlikely to see price increases of any significance in the coming year as abundant crops are available all over the world and planting intentions are mainly positive,” he said.