Farmer's co-operative Dairygold has reported a 33% increase in operating profit to €27.3m in its results published today.

Revenues for the year rose by 16% to over €847m, while the co-op said that milk output was 4% higher at 959 million litres.

It said this increased volume is seen as a good indicator of Dairygold's milk suppliers' desire for expansion.

Dairygold said that its individual businesses all contributed to the improved financial performance. Strong returns from international dairy markets also helped the group deliver a leading milk price to milk suppliers, it added.

"The excellent financial results achieved in 2013 represent the continuation of the positive trend of the past number of years," commented Dairygold's chief executive Jim Woulfe.

"Our strong financial position, combined with a thought out expansion strategy ensures that the Dairygold business is ready for growth. This will be achieved, both organically in a post quota environment and with strategic acquisitions as appropriate," he added.