Strathroy Dairy saw profits fall in 2018 as it paid higher milk price

Operating profits at Omagh-based Strathroy Dairy fell 33% to £316,112 for the year ended 31 July 2018.

The weaker performance came despite a 17% increase in revenues which reached £77.4m.

The increase in revenues was as a result of an increase in global dairy market prices.

This reflected higher farmer prices which are not always achieved immediately in the market, according to the company.

Operating profit margins fell from a slender 0.7% to 0.4% for the financial year, reflecting the competitiveness of the liquid milk market.

Once a decrease in finance costs is taken into account, profit before taxation increased 13% to £531,063.

The balance sheet has net assets of almost £7m at end July 2018.

The company employs 150 people.

In total, Strathroy processes in excess of 130m litres of milk at its Omagh site, with more than 100m litres coming from 175 southern suppliers.

The backbone of the Strathroy business is in the liquid milk market, which is intensely competitive.

Strathroy Dairy is owned and run by the Cunningham family.