Irish dairy cooperative Dairygold saw operating profit grow during 2010 on the back of increased turnover and through share trading activities.

The group said yesterday (20 April) that operating profit reached EUR18.9m (US$27.5m) against EUR11.8m in 2009, while turnover grew to EUR693.6m, up on the ERU555.2m recorded in the previous year.

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It said that profits were further boosted by share trading activities undertaken by the Co-op to part finance the planned acquisition of a range of properties from Reox Holdings. The share trading activity generated additional income of ERU7.3m, bringing overall profit up to EUR26.2m.

Commenting on the results, chief executive Jim Woulfe said: “The increase in profits and turnover was generated across all of our main business activities. The performance in our dairy operations reflects the improved efficiency of our plant, the continued optimisation of our product and customer portfolios, combined with strong returns from international dairy markets which triggered an increase in on-farm milk production and drove dairy sales volumes.”

Woulfe said that Dairygold’s focus is now on the management of the increased milk production expected when milk quotas are removed in 2015.

“While we acknowledge that we will have to implement some additional processing options post 2015 but we are satisfied that we have the capacity to process our milk pool up to 2015. Before making any investment in capacity we first need to determine the best options in terms of what products should be produced with the extra milk volumes and how that processing is most efficiently achieved,” he said.

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The group plans to conduct a feasibility study during 2011 to understand what its milk requirements will be once the quotas are removed.