The Interim CEO of Tipperary Co-Op John Hunter expects the business to return to profit in 2025 after bracing a challenging period for the society. The Co-Op published it’s annual report on Friday with shareholders due to get more detail at tonight’s AGM.
Mr Hunter said that while 2023 was difficult for dairying nationally due to falling market returns and high input prices, this was compounded in Tipperary Co-Op by exceptional operating challenges in its milk processing facility in Tipperary town. Mr Hunter says that delays in an upgrade of the “bagging” facility resulted in significant unplanned downtime in the dryer plant, lower productivity, higher energy costs, and lower yields.
Sales fell from the highs of €420M in 2022 to €304M in 2023. The Co-Op reports an operating loss of €6.8m for the year compared to a trading profit of €6.9m for the previous year.
The CEO also outlined that difficult decisions to reduce staff levels and labour rates in conjunction with the unions in recent months will help to improve the situation. Mr Hunter did not reference the ongoing talks with Nenagh based Arrabawn Co-Op about a probable merger in 2025 – the matter is likely to be raised at Monday’s AGM which is to be held in the Horse and Jockey Hotel beginning at 8pm.
