Tipperary Co-op sees sales up 17% to €146m as cheese products soar

TIPPERARY Co-op has reported a 17% jump in sales for 2010, up to €146m from €125m in 2009, with profit before tax doubled to €784,000.

The co-op’s cheese division performed strongly during 2010 with a total cheese commercialisation of 15,000 tonnes, inclusive of its French subsidiary company Tippagral. Tippagral had its own challenges during 2010 as the price of its raw materials increased substantially but the business continues to be a key element of the Co-op’s cheese strategy.

Tipperary Co-op is also a prominent supplier of specialised dairy ingredients to the ever growing infant formula sector. The Co-op also manufactures specialised products for the Irish Dairy Board Kerrygold Brand range and has continued to grow and strengthen its position as one of the key suppliers to the Kerrygold lactic butter market in Germany.

Tipperary Co-op chairman Matthew Quinlan said: “2010 was a good year for dairy farmers as the combination of a good milk price and better weather facilitated increased milk production at farm level. The efficient processing of higher milk volumes and better returns for dairy products helped to improve the co-op’s sales performance.”

Despite market volatility and rising energy and fuel costs, the co-op saw butter and milk powder tonnages increased by 3,500 tonnes and cheese output reduced by 1,000 tonnes.

Financial controller Michael Dunlea said that net bank debt was down to €12.7m at year end, while shareholders’ funds now stand at €25m. Cash inflow from operating activities amounted to €3.2m. Overall, Tipperary Co-op retains a strong balance sheet and this provides a solid foundation for the business as it plans for the challenges ahead.