Carbery milk action on shareholding

Carbery Group has confirmed plans to align milk volume to shareholding for its milk suppliers in the Bandon, Barryroe, Drinagh and Lisavaird co-ops.

This will address issues such as securing milk processing capability for expanding milk suppliers, and accessing shareholding value.

“We feel that our planning process to prepare for the opportunities post-2015 is well advanced.

“We are delighted to see that our suppliers intend to increase supply by up to 45% between 2015 and 2020. We have processing capability in place to facilitate this growth and our share alignment scheme will give our suppliers an increased stake in the future growth of the business” said Carbery CEO Dan MacSweeney.

A recent milk supplier survey confirmed their expansion plans.

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.

Mr MacSweeney reported a positive 2011 for Carbery Group, with revenues increasing by 14.5% to €256.5m, and profit before tax increasing by 27.8% to €8.7m.

This reflected a strong performance from the ingredients division, while its Irish-based cheese division had a challenging year, principally due to market returns for cheese under-performing relative to other dairy products.