BY HARRY WALSH
DONEGAL Creameries has told shareholders its performance so far this year is ahead of the same period in 2007.
Managing Director Ian Ireland told the AGM in the Mount Errigal Hotel, Letterkenny, yesterday afternoon that all businesses were performing well and 'excellent progress' was being made in the seed potato and added value dairy products business.
Turnover grew by 12 per cent in 2007 while earnings per share grew by 92 per cent. Profit after tax for last year was ¤11.168 million with shareholders receiving a dividend of ¤15.5 cents per share, an increase of almost 11 per cent on 2006.
Mr Ireland said that a key part of Donegal Creameries continued growth into the future would be the ongoing development of organic milk at An Grianan farm in Burt.
"We have 700 acres in conversion at the present time with another four to five hundred acres planned for next year. By 2012 we hope to have up to 2,000 acres converted which could, potentially, make it the largest in Ireland if not Europe," Mr Ireland said.
Noting that excellent progress continues to be made internationally in the seed potato business, the Managing Director said that Irish Potato was well positioned to continue to develop in the growing global seed potato business.
"Its a seasonal business and the 2007/'08 season has just finished. Much will depend on the yield we get per acre and the amount we will be able to sell at next year but it should work well," he said.
Admitting that the dairy division was 'weak' at the present time, Mr Ireland noted that the milk prices for the first five months of this year were 30 per cent higher than last year.
"We'll have to watch it carefully throughout the second half of 2008 and 2009. There is a view that it has bottomed out but we'll wait to see the market returns," he said.
"We will continue to build our food and dairy business around provenance and organic," he added.
Twelve months ago the Group increased its stake in Monaghan Mushrooms from 23 per cent to 35 per cent. Mr Ireland told shareholders that the company was 'performing well'.
The Group is also committed to managing and developing its property portfolio to create additional value for shareholders.
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