Revenue increases but milk volumes down at Carbery

CARBERY Group saw revenues grow from €535m in 2021 to €700.8m in 2022, a group turnover increase of 31%.

As supplier milk prices decline globally, the company announced plans to double the sustainability bonus, Futureproof next year. It paid €3m to farmers in 2022 and had a 95% uptake, which will increase to a potential €6m (equivalent to 1cpl), for participating farmers in 2023.

As it published its annual results this week it revealed that milk volumes at the Ballineen plant decreased to 598m litres (down 2% from 2021), and it announced a €10m stability fund to support farmer shareholders through future challenges.

Significant reductions in climate footprint globally were achieved by the company across the key environmental areas of carbon emissions (-5.5%), water use (-8.4%) and waste to landfill (-44.7%).

Ceo Jason Hawkins said they were pleased to be able to report to shareholders a successful year for Carbery. ‘This is in the form of revenue and business performance, which saw record returns from markets for our products, but balanced with very high input costs for Carbery and for our farmer shareholders.

‘What I judge to be more important is that we managed this situation to build for our future.

‘Introducing Futureproof, our sustainability bonus for our suppliers, supporting shareholders on fixed milk contracts, and setting aside €10m for our sustainability fund to support milk price challenges through 2023. These are forward-looking initiatives designed to ensure a stable future for our shareholders.’

Carbery chairman Cormac O’Keeffe said: ‘2022 was a banner year for milk prices, and we were happy to be able to deliver these in line with shareholder expectations. Equally important for myself and the board was our commitment to preparing for the future.

‘With Futureproof, our sustainability bonus, we are providing tangible financial support from the company to support farmers in adopting more sustainable and efficient practices.We are proud to be supporting our farmers shareholders through a difficult period for farming.’

He said there’s a lot to be hopeful for within the sector. ‘We know our climate targets, we know what we need to achieve and through Farm Zero C and other projects we are pioneering science-based innovations that will help us to reach these targets,’ he concluded.

Investment continues across the group, including developing a visitor centre as part of Farm Zero C climate neutral farm project near Bandon, along with a new savoury innovation centre in the US, to support acquisition of savoury flavour company in 2021.

This year will see the development of the next strategy for Carbery Group, as it looks to medium and long term horizons to plan for the future.

‘In 2022, the company collectively agreed on a new purpose – Enriching Lives, Together – which will be brought to life in 2023 and unite the team to deliver on the ambition of our new strategy,’ said Jason.

‘This purpose encompasses our impact on our customers, but also with our shareholders, employees, suppliers, partners and our wider communities. We are always close to our co-operative roots, and so we are focused on making our collective impact a positive one, and a meaningful one.’

Carbery employs almost 1,000 people, with 1,208 local farmer suppliers. It operates from 12 locations.