Tipperary Co-Operative has reported a 50 per cent increase in operating profit at £1.1 million (#1.4 million) for last year, on a record turnover of £84.1 million.

Higher prices in world dairy markets and income from the Tipperary Mushrooms business - a joint venture with Monaghan Mushrooms - were the main factors contributing to the increase in profits.

This is the first year in which the mushroom business has been included in the results.

Some 35 independent growers are now producing mushrooms.

Tipperary has invested £2.5 million in a plant to handle 220,000 pounds of mushrooms produced each week.

The mushrooms are shipped daily, overnight, to the British market.

"Plans are being progressed to expand this business significantly. This alternative industry is a great boost to the county at a time when milk supplier numbers are reducing," chairman, Mr Sean Murray, told shareholders at the a.g.m. in Dundrum.

The co-operative's balance sheet remains strong with shareholder funds up to £16.65 million from £15.77 million and bank borrowings minimal at £951,000.