Labour cost cuts help Arrabawn hit profit
Arrabawn achieved an operational profit of €238,389 for 2006, compared to a loss of €2,043,956 in 2005.
In 2001, the co-op employed 272 at a cost of €8.4m, to process 234m litres of milk, and generated sales of €129m.
In 2006, 192 were employed at a cost of €8m, to process 228.5m litres of milk, and sell €132m.
The co-op paid farmers 26.21 cent per litre for milk in 2006, 1.3 cent behind their 2005 price.
Labour cost savings are more than one third, when corrected for inflation.
But at the Arrabawn annual general meeting, Conor Ryan, chief executive, said the 2006 profit was totally inadequate, on a turnover of €132.4m.
Trading division sales increased to €46.5m in 2006, from €37.1m the previous year. Greenvale in Thurles, acquired in 2006, is making a significant contribution.
Arrabawn is also benefiting from co-operation with the Town of Monaghan, Lakelands, and Connacht Gold co-ops, and had discussions with the Newmarket and Tipperary co-ops on developing cheese manufacturing.
A €6.84m grant has been approved towards Arrabawn’s expenditure on a whey, skim milk powder and butter project.
