AGRIBUSINESS: Cork Marts, the co-operative livestock marts group, has reported a pre-tax loss for 2001 of €641,000 on a reduced turnover of €51.7 million
The loss, the first for many years, resulted mainly from a difficult trading year that saw commission fall when livestock marts were closed for four months because of the foot-and-mouth crisis.
The loss in 2001 contrasted with profits of €3.1 million in the previous year. Turnover fell by 37 per cent from €82.6 million in 2000.
The chairman, Mr John Stanley, in his annual report, said that every effort was made to reduce costs, but payroll accounts for almost 60 per cent of operating costs.
Mr Stanley said the balance sheet remained strong. The group, which operates eight marts in Munster, had cash balances of €2.75 million and no borrowings. Shareholders' funds have dropped slightly from €10.4 million to €9.7 million.
There has been a 50 per cent fall in cattle throughput through livestock marts in the past 20 years and the level of rationalisation required has not taken place on an industry basis. As a result, there was a serious cover-capacity problem.
Mr Stanley said Cork Marts remained committed to its rationalisation plans of 1999 to reduce the number of its marts' centres.Planning permission has been granted to Cork Marts for the development of offices in Bandon and outline approval has been given for the development of light industry units near Youghal in Co Cork.
