Arrabawn’s profits down as it keeps milk price high
While operating profits were down from the €4.4m achieved in 2014, the processor did support a strong milk price for its suppliers in a hard year for dairy, with a 2015 average milk price of 30.3c per litre.
Arrabawn CEO, Conor Ryan, said: “We’ve managed to deliver a very solid performance. The co-op’s balance sheet is very solid, with total capital and reserves going from €42m to €44m., further underlining the strong performance.”
Arrabawn Co-op says that its focus on efficiencies, its capital investments of €40m over the past five years, and its milk price supports have all helped it limit the impact on its suppliers of a significant downturn in global commodity prices.
Extensive capital expenditure of €9.1m in 2015 to meet increased volumes resulted in debt levels rising from €9.25m to €15.8m.
Fuel and power costs, thanks in large part to the natural gas connection, dropped by 9%, which was significant in a year when 15% more milk was processed.
The company’s agri-trading division also performed strongly, with feed volumes up 10%, increasing turnover by 2%.
