Farmers will share in co-operative creamery’s record profits

FARMER members of one of Wales’ leading dairy co-operatives stand to receive an average £3,750 in additional shares after the co-operative reported record profits.

South Caernarfon Creameries near Pwllheli, Gwynedd, has reported operating profits of nearly £3m (9%) on sales of £33.1m in the year to March, compared to a profit of £389,000 (1.2%) on sales of £31.7m in 2016.

In its annual report, sent out to its farmer member shareholders last week, the co-operative says the key drivers for the much-improved financial performance were the improvement in dairy commodity markets in the second half of the year, the delivery of two major capital projects and the outcome of a quality sales book.

Managing director Alan Wyn Jones said: “The results for the period is very pleasing and is a reflection of the progress the co-operative has made across all of its activities in recent years.

“Having delivered two major capital projects in the last two years, the focus now is very much on ensuring that our improved performance is sustained in the longer term for the benefit of all of our farmer owners and staff. We have a very clear strategy for further growth. This involves growing our Welsh milk field – this can only further support Welsh agriculture and the local economy.”

The company employs 130 local full-time staff, having increased its workforce by 30 during the year. The co-operative’s directors are to propose a script dividend to its 127 farmer members equivalent to 0.5p per litre of their annual milk production, resulting in the average member receiving £3,750 in extra shares.