West Cork dairy firm Carbery revenues jump 31% following 'banner year for milk prices'

Milk price increases were driven by inflation rather than production growth at the firm as milk volumes at the Carbery Ballineen plant decreased to 598m litres last year

Last year, the Carbery Group introduced the Futureproof bonus for suppliers locked into fixed milk contracts. It has paid participating farmers €3m and this is set to increase to a potential €6m in 2023.

West Cork-based international milk and cheese producer Carbery grew revenue to record levels last year on the back of bumper milk prices.

Company revenue jumped 31% to €701m, up from €535m in the previous year, as 2022 was a “banner year for milk prices”, said Carbery chairman Cormac O’Keeffe.

Milk price increases were driven by high input costs rather than production growth at the firm as milk volumes at Carbery's plant in Ballineen Co Cork decreased to 598m litres last year.

Overall, Carbery recorded a strong performance in its annual results despite obstacles for its farmer shareholders including soaring energy bills.

Carbery Group CEO Jason Hawkins: €10m stability fund to support farmer shareholders through challenges such as the war in Ukraine is a 'forward looking initiative'.  File picture

Carbery saw “strong stability” in its cheese business among its customer base across Europe and Asia.

Last year, the firm introduced a bonus for suppliers that are locked into fixed milk contracts called Futureproof, which paid participating farmers €3m. This is set to increase to a potential €6m in 2023.

The company also set aside €10m in a stability fund to support farmer shareholders through future challenges as the ongoing war in Ukraine puts pressure on the market. Carbery CEO Jason Hawkins said: 

These are forward-looking initiatives designed to ensure a stable future for our shareholders. 

Carbery Group is owned by four Irish co-operatives: Bandon, Barryroe, Drinagh, and Lisavaird. It employs almost 1,000 people, with 1,208 local farmer suppliers.

It operates from 12 locations including Ireland, Britain, the US, Brazil, Italy, Singapore, Indonesia, and Thailand and supplies more than 50 countries worldwide.

Carbery was established in 1965 and remains one of Ireland’s leading producers of award-winning cheeses for the industrial, foodservice and retail sectors. The firm produces a wide range of cheese, including the Dubliner brand, Carbery Cracker, cheddar, reduced fat cheeses, and Red Leicester.

Over the last 20 years, Carbery has moved into the wider food and beverage market through its acquisition programme launched in the late 1990s. The aim of this programme was to grow Carbery into becoming a leading international supplier of added-value ingredients and flavours while retaining its heritage and expertise in dairy.

Through a series of acquisitions in Britain, the US, Europe, South America, and Asia, it has successfully built Synergy, its international flavours business.

Synergy battled global disruptions last year including the war in Ukraine, soaring energy prices, and the pandemic.

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