By Chris Ashmore
Donegal Creameries plc’s An Grainan Estate near Burt could become the biggest organic farm in Ireland, if not in Europe, its Managing Director, Ian Ireland has forecast.
The company already has around 700 acres devoted to organic production near the Derry border and has plans to develop a further 2,000 acres for organic vegetables, crops and diary enterprises.
Reflecting on the results for the year ending December 31st, 2007 – which saw turnover grow by 12% in 2007 and pre-tax profits rising 307% to almost €15 million – he said that the key divisions were performing well.
The company’s core diary business saw turnover increasing by 22% in 2007 to reach over €59 million of its €125.6m turnover. He pointed out that it had processed an additional four million litres of milk and seen its branded milk market grow by 5%.
The agri-business sector saw a small rise in turnover to €66.4 million, with its seed potato export business reaching record volume levels. As part of its diversification programme a number of retail outlets now operate garden centres.
Of its added value products, sales of its “Rumblers” instant breakfast cereal rose by 20% last year – and continue to be used by several airlines.
As part of the company’s continued diversification, land has been acquired in Northern Ireland, it also has a small amount of forestry and continues to build its property portfolio, which includes student accommodation in Letterkenny. The company has also increased its stake in Monaghan Mushrooms from 23% to 35%.
Mr. Ireland said that he expected the company to meet market expections in 2008. Company chairman Geoffery Vance described the results as “excellent.” Profit after tax was €11.2 million with earnings per share up 292% to 109.8 cent.