Carbery warns on dairy outlook

THE DAIRY market outlook will prove more challenging in 2018, despite increased turnover reported at Carbery Group in 2017, the West Cork-based ingredients company’s CEO Jason Hawkins has said.

Carbery Group recently reported a strong financial performance for 2017, with group turnover increasing by 22.7pc to €417.3m. Supplies of milk to Carbery’s processing facility also increased by 8.2pc to €509m and are up 28pc since the re- moval of quotas, while it also experienced steady growth in its cheese business. During 2017 Carbery also invested a further €17.1m across its global operations.

However, despite this growth, Mr Hawkins warned that concerns remain for 2018 for the dairy industry if EU supply continues to rise.

“Dairy markets will prove more challenging for our dairy business and milk suppliers in 2018, particularly if EU supply growth continues at recent levels.

“We currently have our stability fund in place to support potentially volatile and weakened markets,” he said. He noted that Brexit was also a “significant concern” for their cheese business, but said it is working closely with state bodies to ensure it is supported. It also has its own Brexit team preparing for “all scenarios”.

Overall though Mr Hawkins is optimistic. “We will continue to manage dairy commodity risk across the business. I am optimistic that longer term dairy demand is healthy and that Carbery will continue to create value for our shareholders,” he said.