West Cork dairy firm Carbery revenues slump 12% after 'challenging' year for dairy market

'Despite a challenging year, we managed to maintain our position as leaders in milk price,' said Jason Hawkins, chief executive of the Carbery Group. 

Carbery Group chief executive Jason Hawkins.

West Cork-based international milk and cheese producer Carbery posted a sharp decline in revenue after a “challenging” year for the dairy industry.

In its annual results the company posted revenue of €616m for 2023, a 12% decline on the previous year, while earnings fell 11% in the same period to €46.4m.

“Despite a challenging year, we managed to maintain our position as leaders in milk price,” Carbery Group chief executive Jason Hawkins said.

However, Carbery previously reported record revenue in 2022 on the back of bumper milk prices, but dairy prices have since stabilised.

Volatility of dairy markets throughout 2023 driven by subdued consumer spending due to cost-of-living concerns, high dairy supply from 2022, war, and supply chain disruptions contributed hit earning momentum for the company.

“Despite external challenges, Carbery Group’s milk volumes remained strong at 584m litres processed in 2023,” the company said.

This is a slight decrease on 598m recorded in 2022.

The company’s outlook remains optimistic as it continues to expand with its three-year business plans.

Meanwhile, it aims to reduce its emissions across Scope 1 and 2, European carbon emission measurements, by 4.2% year on year.

Carbery Group is owned by four Irish co-operatives, Bandon, Barryroe, Drinagh and Lisavaird, and employs almost 1000 people, with 1180 local farmer suppliers.

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

CORK BUSINESS

A collection of the latest business articles and business analysis from Cork.