Tipperary Co-op AGM 2012
Strong Trading performance for Tipperary Co-op
Pictured at the Tipperary Co-op Annual General Meeting in Dundrum are Ted O’Connor, General Manager, Matthew Quinlan, Chairman & Michael Dunlea, Financial Controller. Photo: O’Gorman Photography
Pictured at the Tipperary Co-op Annual General Meeting in Dundrum are John Hunter, Assistant General Manager, Richard Donovan, Vice Chairman, William Ryan, Secretary, Ted O’Connor, General Manager, Matthew Quinlan, Chairman, Michael Dunlea, Financial Controller & Seamus O’Donoghue, ICOS. Photo: O’Gorman Photography
The Annual General Meeting of Tipperary Co-op was held at Dundrum House Hotel recently. The meeting heard that the strength and promise of international dairy markets so evident in 2010 came to full fruition in 2011 for the organisation, with a strong performance resulting in sales of €147m, pre-tax profit of €1 million & cash inflow of €3.4m. These improved results were achieved against the background of tight control of overheads and the prudent investment in technology and process efficiencies.
Mr. Matthew Quinlan, Tipperary Co-op Chairman, in his address to the meeting, welcomed the performance of the Co-op and described it as a “reflection of market returns pertaining during the peak milk supply season and the positive movement in the cost base enabling maximum returns to the primary producer and processor.”
Mr. Quinlan informed the meeting that the stability of product prices that existed in 2011 had evaporated and volatility was once more a feature of dairy markets. He assured the meeting that the Board of Tipperary Co-op was aware of the difficulties this volatility caused at farm level and re-emphasised the Board’s determination to support milk prices at this time. In relation to the expected increase in milk supply post 2015 Mr. Quinlan informed the meeting that a survey will be conducted later this year of all milk suppliers to establish a detailed analysis of potential growth patterns in milk supply. He asked that all suppliers respond to this survey as accurately as possible to ensure that proper facility planning measures can be put in place.
In conclusion of his address, Mr. Quinlan extended his thanks to all Customers, Suppliers, Staff, Advisory Committee Members, and fellow Board Members for their support. In particular he expressed deep appreciation of the contribution of Mr. Patrick O’Dwyer who recently retired from the Board following 34 years of continuous service and he welcomed Mr. Michael Ryan to the Board.
Mr. Ted O’Connor, General Manager, in his review detailed the market conditions that pertained during the year, the product and market portfolio and the investments carried out which enhanced operating standards, technologies and improved process efficiencies. He outlined the twin track marketing approach having own key niche markets and supply of product under the Kerrygold brand through the IDB. He outlined progress in the cheese development programme under the tripartite agreement with Tipperary, IDB and Teagasc. He gave a broad overview of all operating divisions and informed the meeting that all subsidiaries had performed satisfactorily in the continuing difficult economic circumstances.
Addressing the future Mr. O’Connor explained the increased demand for funding arising from extra production could not alone be provided by lending institutions. It will be necessary for shareholders to provide some funding for the business. In conclusion he expressed fulsome praise of Enterprise Ireland who continue to be very active in support of the Co-op development programme.
Mr. Michael Dunlea, Financial Controller, presented a detailed explanation of the Profit and Loss, Balance Sheet and Cashflow Statements. Mr. Dunlea emphasised the importance of working capital management in an industry which requires high levels of stock to be carried to meet year-long customer demand. This has become even more important at a time of tightened credit availability.
Overall the Co-op is well positioned in terms of processing capacity and markets for its products to deal with future expansion of it’s business. Tipperary continues to play a very important economic role in it’s community and is supportive of many Community based initiatives.
Pictured at the Tipperary Co-op Annual General Meeting in Dundrum are William Ryan, Secretary, Matthew Quinlan, Chairman, Ted O’Connor, General Manager & Michael Dunlea, Financial Controller. Photo: O’Gorman Photography