Arrabawn Co-op is due to process 45 million litres this month after collecting 227 million litres in 2014 - the highest throughput in its 100-year history, CEO Conor Ryan told its annual general meeting in Nenagh on Friday. Profit rose by 60% last year on the back of a growing operating margin, at 2.08% compared with 1.26% in 2013. While Arrabawn held its price through most of 2014, achieving an average38.27 cent per litre, Ryan warned that a drop was on the way. “We have been at the top of the league table on milk price for much of the past 12 months but markets are looking for reduced prices and milk price will inevitably come down. The last five GDT auctions have been down and showing considerable pressure and that is bound to tell,” he told the AGM.

However, he confirmed that the co-op's 0.5c/l collection charge will end for May milk payment and that the cell count bonus will be implemented by 1st June.

Despite interest expressed by some Arrabawn members to move to another processor earlier this year, the co-op said it had 12 more suppliers than prior to the end of quotas and would welcome new entrants.

Ryan said the €15 million invested in the past five years mean Arrabawn can handle the additional volumes. “We have come through a period of very significant investment in the run up to post-quota and it is paying off. We are getting record deliveries of milk but have the capacity to cater for it," he said. Following the completion of expansion works at the Nenagh andKilconnell plants, including a connection to the natural gas supply, the co-op is now seeking planning permission for additional cold storage and loading bays at Kilconnell.