Turnover at the West Cork based Carbery Group increased by €9.5m on the year to €178.9m in 2004, while profits before tax were down €1m on the 2003 figure to €4.3m, due to a difficult diary market.
Carbery is one of the largest cheese makers in the UK and Ireland and the UK market is the principal outlet for its cheddar cheese output. The company said while UK cheese prices recovered in 2004, a weak sterling continued to have the effect of reducing euro equivalent returns on cheese.
A positive development was the stability of milk price in a year where the first mid-term-review (MTR) effect reduced support prices by 7% from July.
CEO Dan McSweeney said that dairy markets appear to have weakened in line with the first phase of MTR cuts with frequent reductions in EU supports by the Commission over the past year having a weakening effect on the internal EU market.
'Even though World markets are quite buoyant currently, EU policy is clearly intent on bringing the internal market down to MTR support levels',' he added.
The group said its ingredients division performed very well in 2004, particularly its flavour and savoury businesses, where it has operations in the US and the UK.
This year Carbery will be expanding its savoury production operation in Co Cork with a €5m investment and will commence its whey processing joint venture in the UK with AJ and RG Barber, a Somerset cheese maker.
The Carbery Group is owned by the four West Cork Co-ops : Bandon, Barryroe, Lisavaird and Drinagh.
