Profits rise 22% at Carbery Group

Dairy processor Carbery Group’s profits rose 22.4%, or almost €2m, to €10.57m last year, with turnover up 11% to €285m.

In global terms, it was a good year for the food ingredients, flavours and cheese manufacturer, headquartered in Ballineen, Co Cork, perhaps best known locally as the producer of Dubliner cheese.

Carbery’s synergy flavour division performed very well in Europe, South East Asia and the Americas, where it continues to expand.

The group acquired both Sensus, in Hamilton, Ohio, and Sethness Greenleaf, in Chicago, in 2011.

Synergy Americas began building its state-of-the-art flavour development and manufacturing facility in Wauconda, Illinois, which will be commissioned this year. In Brazil, Synergy established a favour development and manufacturing facility close to Sao Paulo.

In Thailand, a flavour development and manufacturing facility in Bangkok will be fully commissioned during this year to serve the South East Asia market.

Carbery chief executive, Dan MacSweeney, said: “Carbery group delivered significant progress in implementing its growth strategy during 2012, building a solid base for further growth in the coming year.”

In Ireland, poor weather conditions and volatile milk markets meant 2012 was a difficult year for the group and the farmers supplying its four shareholder co-ops, namely Bandon, Barryroe, Drinagh and Lisavaird.

The group has introduced a milk supply share scheme to manage a planned expansion in milk volumes post-2015. Carbery’s shareholders have approved the scheme, though some have resisted the three-year exit mechanism to buy back shares from those who no longer supply milk to the group.

The group says there has been a significant uptake on this scheme by suppliers.

Carbery is optimistic about this year, predicting less volatility in global milk prices. The group has also commissioned its Irish plant to produce advanced nutritional fractions for infant formula and sports nutrition products.

Carbery is working with the Irish Dairy Board to identify routes to market for extra cheese volumes that will be produced. It is also working directly with its ingredient customers to secure added value markets for its ingredients products.