Centenary Thurles, the farmer-owned co-op, saw operating profits fall by more than 40% last year to just under €860,000 as profit margins narrowed to just 0.8%. The sharp decline in profits was mainly a result of the co-op setting aside €0.5m last year for a milk price volatility fund.

This brings Centenary’s milk price volatility fund to just over €1.3m. The co-op aims to build this volatility fund to €2m over the coming years, which would allow it to pay the equivalent of 1c/litre on 200m litres of milk.

The year 2018 was a record one for Centenary’s sales as turnover jumped 9% to €103.7m. This was driven by a very strong year for the co-op’s agribusiness division, with animal feed and fertiliser sales soaring 26% in the year to €43.5m.

Centenary operates a small liquid milk business but sells almost all its milk directly to Glanbia. Last year, the co-op’s dairy business recorded sales of €58.7m, which was in line with the previous year. The co-op’s milk supply grew by 6% last year to 161m litres.