Operating profits at farmer owned dairy and grain co-op Tirlán fell by 5% to €68.3m last year, on the back of lower revenues.
Turnover at the group was down 17% to €2.53 billion caused by a drop in commodity market prices from record highs.
The average price for milk at 44 cent per litre was down from 63 cent in 2022, while green feed barley came in at €205 per tonne on average, compared to €310 a year earlier.
"The challenges faced by both the sector and farmers last year were unprecedented," said Tirlán chairperson, John Murphy.
"Weather, input costs, and regulatory change combined to cause considerable concerns for our farm families who are already in the midst of significant change."
"The organisation remained strong and supportive through its advisory teams who engaged with our farm families on a daily basis."
The organisation, which owns brands such as Avonmore, Kilmeaden, MyMilkman.ie and the Truly Grass Fed range, paid a dividend of 19.058 cent per share to its members for the period, totalling €6.5m.
It also said that it provided a series of supports to members, including a high price paid across the peak supply months, feed supports and a bonus of €5.8 million to those who traded with the co-op through its stores and online.
Net debt at the co-op fell from €234 million in 2022 to €155 million last year, the lowest level in a decade.
Mr Murphy added that a series of business decisions taken by the organisation in recent years provide a strong foundation for growth.
"We have made major investments in diversified production facilities, alongside developing our R&D and commercial teams, and are constantly seeking new opportunities for our expanding portfolio of brands on international markets," he said.
"It was wonderful to see our members approve a series of proposals to modernise our Co-op delivering greater gender-balance and involvement of our younger farmers."
"In addition, our new Governance Academy will help to build deeper knowledge of our Co-op for the future."
Tirlán said it has also signed up to the Science-Based Targets Initiative (SBTi) and has made progress on its 2030 targets for Scope 1, 2 and 3 carbon emissions.
It said ongoing progress is being achieved in on-farm emissions, with a drop of 6.3% in the carbon footprint of milk production through the use of new technologies.
Jim Bergin, the CEO of Tirlán who will shortly step down, said the performance of the co-op in a difficult year reflected the underlying strength of the business.
Tirlán will shortly open a new cheese production facility in Kilkenny as part of a joint venture with Dutch family-owned dairy company Royal A-ware.
Around 80 people will be employed at the facility which will produce over 50,000 tonnes of continental cheese per year.
