Connacht Gold Co-op returned to profit last year despite what the company called “difficult conditions”.

Turnover fell 15 per cent to €264 million but the co-op still reported profits of €1.3 million after tax compared to a loss of €2.3 million in 2008.

Chief executive Aaron Forde said all areas of the co-op’s business were affected by difficult underlying conditions in the agri-food sector and the economy.

However, a 10 per cent fall in costs, including a €2 million, or 7 per cent, decline in the wage bill for its 560 staff saw it reverse the previous year’s losses.

Mr Forde said the co-op had been forced to support milk prices for most of the year and this impacted on the financial position.