Tipperary dairy co-op Arrabawn has reported a 46% fall in operating profit to €1.14m for 2012. The figure for 2011 was €2.1m.
The fall was blamed on a drop in the return on dairy products.
Profit before tax was €0.4m, a fall of €5.8m on 2011 figures.
However when an exceptional item relating to a share disposal are excluded from the 2011 figures, the fall in pre-tax profits was €1.15m.
Speaking in Nenagh today at the co-op's AGM, chairman Patrick Meskell said that the reduction of returns on dairy commodities during the peak production period meant that the co-operative supported the price of milk over the key months of the year and this had an impact on its results.
Arrabawn, which processes and distributes more than 40 million litres of milk every year, said the fall in dairy prices resulted in €12.4m decrease in turnover in the society's dairy division to €120.2m.
Turnover in its trading division was up €12.5 million to €65 million, driven by increased feed sales.
The company also produces a range of consumer products and dairy ingredients including casein, milk powder and whey.
It is also involved in the supply of feed and agri-services, and operates a number of retail outlets.
