Tipperary Co-op suppliers to receive year-end bonus for 2013 milk
The co-op has a cash inflow of €3.8m. Its suppliers are to receive a year-end bonus of 0.25c per litre for all 2013 milk. It also plans to issue additional bonus shares to the value of €200,000 to its milk supplier shareholders in relation to their 2013 milk supply.
The Tipperary board said suppliers have engaged with the Sustainable Dairy Assurance Scheme, which it cites as a “further confirmation of commitment to the quality and sustainability requirements of our customers”.
Tipperary co-op chairman Matthew Quinlan said: “The strong trading and financial performance has delivered a vibrancy to the business and strengthened the balance sheet at a critical juncture in the life of the co-op.
“Our dairy division has enjoyed a strong surge in dairy product demand in 2013 and the record volumes of milk processed, despite weather and feed-related milk output restrictions at the beginning of the year. Overall, the success of our dairy operations resulted in strengthening milk prices to our suppliers and the payment of a year-end bonus of 0.25c per litre for all 2013 milk.”
Mr Quinlan said the society has plans in place to process extra milk supplies expected with the end of quota restrictions next year. The creamery has also made progress in enhancing its routes to new markets.
However, he also cautioned that the demand for increased working capital and the likely occurrence of regular rather than cyclical volatility in product prices could provide significant challenges for the dairy sector. He suggested that the Department of Agriculture-sponsored Food Harvest 2020 initiative should be followed up by the establishment of a similar study to focus on the threats, and weaknesses of an increased and unregulated milk regime.
At the co-op’s AGM at Dundrum House Hotel, financial controller Michael Dunlea said: “Our strong balance sheet will ensure the society has the financial strength to meet future challenges.”
Tipperary co-op general manager, Ted O’Connor, said he was confident the co-op was prepared for post quota challenges, citing its research and development& programme and its work with the Irish Dairy Board.
