Arrabawn increase turnover by 5% to €125m
In addition, the sale of IAWS shares and property at Oranmore, Co Galway, added €4.327m of other income to the trading account.
After restructuring costs and interest charges, this resulted in a retained profit for the year of €3.21m.
Sales in the dairy division increased by 8% due to improved market returns and an increase in the volume of milk purchased. But sales in the trading division were down 5% because better grass growth during the year led to a drop in demand for farm inputs in the stores.
Patrick McLaughlin, chairman, told the co-op’s annual general meeting in Portumna, Co Galway, that rationalisation benefits are now coming through and making a major contribution to the Society’s performance.
He said the balance sheet had improved and net assets had increased by €3m to €26m.
Butter produced by Arrabawn Co-op in Nenagh, and sold on export markets by the Irish Dairy Board under the Kerrygold brand, recently won a gold medal at the cheese and buttermaking Olympics.
Arrabawn’s salted sweet cream butter triumphed over thirty-two international entries at the world championships in Madison, Wisconsin, USA.
Major changes to the rules of the co-op were also endorsed at a special general meeting of shareholders.
The new rules will allow for the existing board of 64 members to be replaced by a board of 22. The larger board will now become a representative committee, directly elected by the shareholders. The board of 22 will be elected by the representative committee.
Some members, known as the Arrabawn Action Group, had called for direct elections by all shareholders of a board of 12 or 14.
Arrabawn chief executive Jimmy Murphy said the rule changes were an interim measure. A comprehensive analysis of the co-op’s structure will be undertaken this year and proposals for governing the Society will be brought to another special general meeting in 2005.
