NORTH Connacht Farmers' Co op chairman, Mr Dan Gilmartin, said that the firm's strong growth in 1995 was partly due to expand into non intervention products.
Pre tax profits were up 46 percent to £2.28 million while sales increased almost 16 per cent to £170.4 million.
Mr Gilmartin said the emphasis on expansion provided an added boost to an already buoyant dairy industry.
The results are distorted slightly by the figures from NCF's 45 per cent associate, Shannonside Milk Products.
While Mr Gilmartin said that Shannonside had an "exceptionally good year", NCF's share of profits from Shannonside was only £3,000, compared to £148,000 the previous year.
Sources close to NCF said that NCF and another Shannonside shareholder, Eiltoghert Co op, had decided to increase the milk price to Shannonside milk suppliers at the expense of profits, after another shareholder and milk supplier, Midwest Coop, shifted its milk supplies to Nenagh Co op.
"They saw no reason why a shareholder, who had withdrawn milk supplies, from Shannonside should benefit at the expense of the suppliers who stayed with Shannonside, the source said.
Mr Gilmartin said that Shannonside had obtained excellent returns from casein, fat filled powder and whey powders, all of which were exported through the Irish Dairy Board.
