Despite the depreciation of the dollar and large reductions in EU export refunds, the Irish Dairy Board (IDB) increased its turnover by 4.5 per cent to €1,896 million in 2004.
The board's operating surplus increased by 5 per cent to €39.5 million and pretax surplus rose 3.8 per cent to €37.9 million leaving retained earnings for the year at €30.1 million.
Predicting a fall in milk prices over the next year, IDB managing director Dr Noel Cawley said that the company was "in top-class shape".
However, he warned producers that the EU Commission was "hell bent" on reducing European milk price supports as fast as possible because there was still a surplus of 15-16 per cent milk in the EU.
Mr Cawley said that, in 2004, the board had purchased €50 million more worth of dairy produce in Ireland than it had in the previous year.
He said that 40 per cent of the board's trade was in Irish-produced dairy products and it had paid bonuses to co-operative members of almost €105 million since 1993.
"These bonus payments arise mainly from the performance of the Kerrygold brand, profits generated by all IDB subsidiaries and non-member trading," said Dr Cawley.
He said that Kerrygold sales had increased by 5.2 per cent last year and this was especially important as it was sold at a premium price in all markets.
Branded sales had been particularly good in the US, where IDB subsidiary Distribution Plus had made solid progress and provided a vehicle through its distribution system for Irish products to 12,000 outlets across the United States.
Sales of cheese and butter had been particularly good there and butter was being marketed as a unique Irish product being yellow and spreadable compared to the white stiff butter produced in the US.
Dr Cawley said that, in the UK, the Adams Food subsidiary had a satisfactory trading year during which overall turnover increased by 11.8 per cent and was now the third-largest packer of cheese in the UK.
In Germany, sales of Kerrygold butter held up despite the German economic environment and the same was true in Belgium and Greece, where Kerrygold sales of butter and cheese were up by 2.4 per cent.
