JUST 67% of farmers over the age of 65 surveyed by Carbery have a successor in place, according to figures published this week.
The extensive survey was published as part of the Carbery Annual Report for 2024, which collated answers from 80% of Carbery’s farmer shareholders.
Results also showed that 10% of Carbery’s suppliers have plans to retire in the next three years, with 12% of those surveyed under 35, and another 12% over 65.
Almost half of the farmers surveyed are interested in solar panels, and another 76% see value in slurry storage. Almost half would also reduce cow numbers, if the nitrates derogation is reduced.
‘We know there is concern from farmer shareholders around the future of farming, specifically around the impact of a loss of the nitrates derogation,’ said Carbery chairman Vincent O’Donovan.
‘We also know that farmers are concerned about future milk supply, succession, farming as a viable career choice for young people and the impact of climate measures.’ That said, the chairman maintained that overall, shareholders are ‘well positioned’, and that milk supply looks stable into the future.
That future looks bright for Carbery, as the company increased its revenue to €668m last year, up from €616.1m in 2023.
Operating profit for the year was reported at €24.8m, and the net debt at year-end was €39.5m.
The company does not intend to pay a dividend, other than the €0.9m paid during the year to ‘A’ shareholders.
There was a 100% attendance rate by board members at relevant meetings and committee meetings.
O’Donovan, who’s held his position of chairman since last June, admitted that the start of 2024 had been very difficult for farmers, with wet weather continuing right through and into April.
Saying how the co-op had implemented a payment of 5cpl for milk supplied in March 2024, O’Donovan noted how farmers would need to factor in the milder and longer, wetter winter and spring seasons that are likely to be the norm from here on in.
O’Donovan disclosed how Carbery had paid the second-highest average milk price on record in 2024 (second only to 2022), and also allocated €8.6m into the stability fund, ‘rainy day’ funding for potentially difficult periods like weather, or challenged dairy markets.
In terms of marketing, Carbery said their ‘Dubliner’ cheese continued to hold a status as premium brand and they marketed it very successfully using social media influencers.
They also reported success with their limited edition Cracked Black Pepper Carbery Cracker cheese, where ‘sales have significantly surpassed expectations’.
The company also reported that a better-informed customer base were now looking for an alternative to protein powder, and in response to this demand Carbery have created the product ‘Carbery’s Cheese Extra 10’ with 40% more protein.
Carbery also credited their flexibility with helping them to maximise their returns, particularly the ability to produce both mozzarella and cheddar cheeses.
Mozzarella is used, globally, more than cheddar.
The company also pointed to their success in the Japanese market, where a third of the customer visits they hosted in Cork in 2024 were from Japanese customers.
Carbery reported a strong year of business in the Americas in their report, a result of ‘new business wins’ in the US and significant growth in Brazil.
The company have plans to invest in Vinhedo, Sao Paulo, with a new manufacturing plant and office space.
There are also plans for their Ohio facility in the town of Hamilton, and phase one of a manufacturing site in Thailand has also been completed with phase two due to continue in 2025.
Ceo Jason Hawkins reported that 574m of milk was processed at the Ballineen site last year, and despite the troublesome wet weather, overall milk levels were only 2% below the 2023 levels.
Under the FutureProof scheme, shareholders received €12.2m in 2024 and a key priority of the scheme is now water quality: ‘a mandatory measure, meaning farmer shareholders have to undertake it to receive any bonus.’
In terms of emerging markets, Carbery noted that the global whey protein market is estimated at €7 billion, and that they as a company are ‘well positioned’ to capitalise on this growth with infant formula, and clinical nutrition products among their offerings.
They also sponsored a conference on the product, The Whey Forward, and used the opportunity to promote their ‘Optipep’ brand, an hydrolysed whey protein high in protein and calories.
Releasing the report earlier this week, O’Donovan used the opportunity to say how ‘proud’ he was of the business’ success and thanked the shareholders ‘who continue to support the growth and investment strategies of Carbery’.
Hawkins, meanwhile, echoed these statements saying that he was ‘proud to see our business continue to grow and deliver for our farmer shareholders.’
