Carbery Group Continues to Grow
Carbery Group, the Irish and international food ingredients, flavours and cheese manufacturer, had a positive year in 2011 with revenues increasing by 14.5% to Eur256.5 million and profit before tax advancing 27.8% to Eur8.7 million. Carbery’s 2011 performance reflects an underlying strong performance from the Ingredients division whilst by contrast its Ireland-based Cheese division had a challenging year principally due to market returns for cheese under-performing relative to other dairy products.
The weak cheese markets had a significant effect on performance as Carbery is a substantial manufacturer of cheese and produces a range of cheeses including mature cheddars and reduced fat cheddars. Its flagship brand, Dubliner continues to grow in export markets, particularly in the US. Carbery’s Ingredients business, which includes its flavour business, Synergy, as well as its dairy ingredients business, had a strong year. Synergy continues to grow in existing markets and establish itself in new markets, acquiring two new flavour businesses in the US.
Like all other dairy businesses, Carbery Group is addressing the opportunities and challenges that will come with the removal of quotas in 2015. It has just completed a milk supplier survey regarding additional milk output post 2015. In short, the survey indicates that West Cork suppliers from Bandon, Barryroe, Drinagh and Lisavaird Co-ops intend to increase milk supply by up to 45% between 2015 and 2020. While Carbery has processing capability in place to handle this extra production, over the next few years it will address associated challenges such as working capital requirements and developing markets for this extra output.
As well as preparing to process and market extra product post 2015, Carbery also plans to launch a scheme whereby it will align milk supply to shareholding for milk suppliers. This scheme will address certain key issues, amongst them that of securing milk processing capability for expanding milk suppliers and that of accessing shareholding value.
