Dairygold Co-operative in Co Cork, the last large milk processor to operate as a co-operative, has reported operating profits of £12.8 million (€16.3 million) for last year, an increase of nearly 30 per cent.
Turnover rose by 8 per cent to £675.5 million. Pre-tax profits stood at just over £9 million after exceptional costs of £4.7 million relating to staff redundancies. Profit margins in the dairy division improved as a result of stronger demand on world markets for dairy proteins.
While meat operations were profitable, the report points to the impact of the BSE crisis on this division in the back-end of the year.
Dairygold made two acquisitions during the year - the Hasslington cheese company and McLaren Foods plc in Britain - for a total of £21 million. Both companies contributed sales of almost £34 million and profits of £1.7 million to the cooperative's performance.
The liquid milk market continues to be strong for Dairygold and the trading division showed a reduction in the high level of feed and fertiliser sales over the previous year, but still made a satisfactory return.
As a result of these acquisitions, Dairygold's interest payments almost doubled. Net debt at the end of 2000 stood at £82.9 million, an increase from £40.3 million in 1999.
Milk prices, which always have been strong in Dairygold, rose by 7p during the year. Total assets stood at £263 million at year-end.
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