The price of milk paid to farmers last year fell by 9%, according to the Irish Dairy Board's annual report today.
International prices were weak for most of the year and the Board described global markets in 2002 as generally disappointing. However, it is hopeful that world market conditions will be more favourable this year.
The Dairy Board sells product on behalf of the Irish industry in over 100 countries around the world. But because of the global economic downturn, 2002 was a difficult year for the dairy sector.
Prices paid to farmers were down 9%, returns for butter and skimmed milk powder fell by 7%.
However, despite the downturn, the Dairy Board's turnover was up by 1.4% to €1.89 billion, and pre-tax profits at €32m were about the same as the previous year. The strong performance by the board's overseas subsidiaries offset the weak market returns.
The Board's Managing director, Dr Noel Cawley, said improved world demand should improve matters this year, although the weakening of the dollar and sterling could impact on final returns.
He also expects that a recent contract with a leading US distributor will contribute about $130m annually for the next few years to the board's finances.
