“Liquid milk market was competitive in 2017 primarily due to the fact of unforeseen raw milk price increases,” Arrabawn CEO Conor Ryan told the co-op's AGM on Monday. The bulk of the investment carried out by Arrabawn last year was at its production facility in Nenagh, including a €3m upgrade to the effluent plant, work on the evaporator and increased capacity on both dryers, which also delivers extra capacity for future growth.
“Our reason for expansion is not to do so just for the sake of it but to add more value to the business and get better returns for our farmers. In the long term, we should build a plant that is capable of processing all the milk comfortably and returning the best price,” Ryan said.
Sustainability
Suppliers were told that sustainability and the environment must be prioritised to avoid expansion issues experienced in the likes of New Zealand and Holland.
“We are going to be hearing a lot about sustainability and the environment going forward and within this area, water quality is going to be a major focus,” he said.
“If we are to avoid the situation that Holland finds itself in today where they have to reduce their cow numbers by 160,000 cows, we are going to have to be very proactive and responsible for water quality issues.”
Arrabawn is currently training staff to help farmers with water quality testing and other related matters.
“My advice is that the day of not prioritising the environment is over. You must respect it and avoid a situation where it comes back to bite you. We’re in the midst of significant milk expansion on this island and we need to do it in a very sustainable way.”
Performance
Last year was "solid" in terms of returns, particularly on the price of butter.
Arrabawn CFO Mícheál O’Kelly said that co-op turnover for the year increased by €49.4m to €249.1m, a 25% increase on last year. Ebitda increased by 5% to €10m. Operating profits also rose to €4.68m. Shareholders funds increased by €3.2m to €51m.
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Friesland Campina and Arla increase June milk prices
“Liquid milk market was competitive in 2017 primarily due to the fact of unforeseen raw milk price increases,” Arrabawn CEO Conor Ryan told the co-op's AGM on Monday. The bulk of the investment carried out by Arrabawn last year was at its production facility in Nenagh, including a €3m upgrade to the effluent plant, work on the evaporator and increased capacity on both dryers, which also delivers extra capacity for future growth.
“Our reason for expansion is not to do so just for the sake of it but to add more value to the business and get better returns for our farmers. In the long term, we should build a plant that is capable of processing all the milk comfortably and returning the best price,” Ryan said.
Sustainability
Suppliers were told that sustainability and the environment must be prioritised to avoid expansion issues experienced in the likes of New Zealand and Holland.
“We are going to be hearing a lot about sustainability and the environment going forward and within this area, water quality is going to be a major focus,” he said.
“If we are to avoid the situation that Holland finds itself in today where they have to reduce their cow numbers by 160,000 cows, we are going to have to be very proactive and responsible for water quality issues.”
Arrabawn is currently training staff to help farmers with water quality testing and other related matters.
“My advice is that the day of not prioritising the environment is over. You must respect it and avoid a situation where it comes back to bite you. We’re in the midst of significant milk expansion on this island and we need to do it in a very sustainable way.”
Performance
Last year was "solid" in terms of returns, particularly on the price of butter.
Arrabawn CFO Mícheál O’Kelly said that co-op turnover for the year increased by €49.4m to €249.1m, a 25% increase on last year. Ebitda increased by 5% to €10m. Operating profits also rose to €4.68m. Shareholders funds increased by €3.2m to €51m.
Read more
Friesland Campina and Arla increase June milk prices
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