Carbery, an international milk and cheese producer based in West Cork, has reported record revenue growth last year thanks to soaring milk prices. The company’s revenue rose by 31% to €701m in 2022, up from €535m in the previous year. Cormac O’Keeffe, Carbery’s chairman, said that the increase in milk prices was due to high input costs rather than production growth at the company, as milk volumes at its plant in Ballineen Co Cork decreased to 598m litres last year.
Despite obstacles for its farmer shareholders, including soaring energy bills, Carbery recorded a strong performance in its annual results. The company saw “strong stability” in its cheese business among its customer base across Europe and Asia. Last year, Carbery introduced a bonus for suppliers 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 such as the ongoing war in Ukraine, which is putting pressure on the market. Carbery CEO Jason Hawkins said that these are forward-looking initiatives designed to ensure a stable future for the company’s 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. The company operates from 12 locations including Ireland, Britain, the US, Brazil, Italy, Singapore, Indonesia, and Thailand, and supplies more than 50 countries worldwide.
Established in 1965, Carbery is one of Ireland’s leading producers of award-winning cheeses for the industrial, foodservice, and retail sectors. The company 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.
Carbery’s success in the face of challenges is a testament to the company’s commitment to innovation and its ability to adapt to changing market conditions. With its strong focus on sustainability and support for its farmer shareholders, Carbery is well-positioned to continue its growth trajectory in the years ahead.