The Dairygold Co-op has reported a big increase in turnover and profits for last year, helped by stronger international dairy markets.
Operating profits from its core activities were €18.9m, up from €11.8m in 2009, while turnover rose by almost €140m to €693.6m.
Profits were boosted by an additional €7.3m from share trading by the co-op, which was aimed at partly financing the planned acquisition of 17 properties from Reox Holdings. Reox was previously spun out of Dairygold. The co-op says the property deals will reduce Reox's outstanding liability to €19m.
'The performance in our dairy operations reflects the improved efficiency of our plant, the continued optimisation of our product and customer portfolios, combined with strong returns from international dairy markets which triggered an increase in on-farm milk production and drove dairy sales volumes,' said chief executive Jim Woulfe.
He said the 2010 performance was also strong in the context of increases in raw materials costs.
Mr Woulfe said Dairygold's focus was now on managing increased milk production which was expected when milk quotes are removed in 2015.
