Pictured at the Tipperary Co-op Annual General Meeting in Dundrum are Michael Dunlea, Financial Controller, Matthew Quinlan, Chairman, Ted O’Connor, General Manager, John Hunter, Assistant General Manager & Richard Donovan, Vice Chairman. Photo O’Gorman Photography
Tipperary Co-op this week announced their Trading Results for 2013. It featured, Sales of €168.5m, a 21% increase on the previous year, a Trading Profit of €1.8m, a substantial improvement on the 2012 profit, and a positive cash inflow of €3.8m.
The Chairman, Mr Matthew Quinlan in his address to the AGM at Dundrum House Hotel on June 10, pointed out that “the strong trading and financial performance has delivered a vibrancy to the business and strengthened the balance sheet at a critical juncture in the life of the Co-op”. In his commentary on the Dairy Division, he referred to the strong surge in dairy product demand in 2013 and the record volumes of milk processed despite weather / feed related milk output restrictions at the beginning of the year. He highlighted the overall success of the dairy operations, which resulted in “strengthening milk prices to our suppliers and the payment of a year-end bonus of 0.25 cent per litre for all 2013 milk”. The Society is also issuing additional Bonus Shares to the value of €200,000 to its Milk Supplier Shareholders in relation to their 2013 milk supply. He also said the Co-op’s engagement with the Sustainable Dairy Assurance Scheme was “further confirmation of commitment to the quality and sustainability requirements of our customers”.
Mr Quinlan gave an overview of the Co-op’s readiness for post quota developments by outlining the infrastructure put in place to handle increased milk supplies and the enhancement of routes to market for same. He highlighted some challenges facing the industry, namely, the demand for increased working capital and the likely occurrence of regular rather than cyclical volatility in product prices.
He put forward the idea that the Department of Agriculture sponsored Harvest 2020 initiative should be followed up by the establishment of a similar study to focus on the threats, and weaknesses of an increased and unregulated milk regime, leading to strategies to deal with same.
Mr Michael Dunlea, Financial Controller, presented a detailed Profit and Loss Account, Balance Sheet and Cash Flow Statement for the trading year. He provided explanations and breakdown on all revenues and costs. He said the Co-op had “a very satisfactory year in terms of financial performance”. Additionally he outlined the existence of a strong balance sheet, which would “ensure the Society has the financial strength to meet future challenges”. He stressed the need for prudence in the financial management of the Co-op’s business in order to ensure its future effectiveness in meeting members’ requirements.
Mr Ted O’Connor, General Manager, in his presentation to the meeting reviewed the successful processing and marketing achievements of 2013 and gave a broad overview on all operating divisions. He expressed his confidence in the Co-op being well prepared for the dairy challenges post quota in 2015. He stated that the Co-op have an R&D programme in place and are also working with the Irish Dairy Board on a number of projects. These product options will ensure that the Co-op will be able to successfully market the extra production post 2015.
In his review of future market prospects he predicted an overall positive view for global dairy product prices. He indicated, however, that there would be short term market weaknesses and presently we are witnessing one of these.
He thanked the Milk Suppliers for their continued commitment to quality milk production. He promised the Co-op’s support for their expansion of milk output. This will be done by the provision of the best technical and financial templates and by working with Teagasc and others in providing appropriate programmes.
Mr. O’Connor expressed his appreciation for the support of the Co-op’s loyal customer base and looked forward to its continuance. He also thanked the various supporting stakeholders and staff for their dedication and commitment.