Farmers warned on loss of EU supports
The annual report of the Kanturk-based co-op, which had sales of almost €19.8 million, showed an operating profit of €418,000 last year, compared to €199,000 in 2003.
Chairman John Ahern said casein prices increased substantially due to increased world market demand and a decline in production in New Zealand.
“While the markers are currently buoyant, the EU has dismantled case in-manufacturing support by 75%. This could have serious implications for the Society if markets decline,” he said.
Mr Ahern said the Fischler-EU mid term proposals will profoundly influence the future of Irish agriculture. If the reforms take full effect in the second half of this year, many experts forecast a drop in milk price.
“This will mean tighter margins and the implementation of strict cost cutting measures at both farm and processing level.
“Over time I expect a more balanced market will emerge and I’m confident that our Society is in a strong position to face the future challenges,” he said.
General Manager Sean McAuliffe said the Society will pay suppliers a bonus of two cents per gallon on all milk supplied during 2004.
“We have maintained our domestic market share for butter and liquid milk in a very competitive marketplace, where cheaper own brands and imported liquid milk continue to apply pressure on margins.
“Although butter prices fell by €200 per tonne during the past year, butter production will remain an important part of our business,” he said.
A decline in stores trading in the past year was attributed to a fall off in a demand for inputs due to favourable grass growing conditions and a reduction in the numbers of farmers involved in milk production. Shop sales continued to improve and there was a further increase in product range, In line with the Society’s policy of rewarding customer loyalty, bonus shares were issued to shareholders who purchased feed and fertilisers from its shops.
