Carbery Group’s earnings for 2024 saw improved revenue and operating profit figures for the year.

Revenue increased 8% to €668m while operating profit increased to €24.8m, an improvement of almost €5m over 2023’s figure.

The operating profit figure is after the processor set aside €8.6m to its stability fund to support milk price in future.

That fund’s balance at the start of 2024 was less than €1.5m after €18.5m was paid to suppliers in 2023.

Carbery processed 574m litres of milk in 2024, a 2% decline on the previous year.

In order to get a clearer understanding about the outlook for its milk pool, the co-op conducted a survey of suppliers.

Balance

That found that the number of farmers planning to exit dairying or reduce cow numbers over the coming years is balanced by the number who aim to increase output.

Overall, average cow numbers are expected to remain steady until 2028.

Almost half of those surveyed said they would reduce cow numbers if there was a cut in the nitrates derogation. One in 10 said they had plans to retire in the next three years, while two-thirds of suppliers over 65 have a successor identified.

Carbery CEO Jason Hawkins said that the outlook for milk production over the forecast horizon means that processor’s focus for investments to grow the business will be targeted at its taste and nutrition divisions where there is more scope of expansion over the coming years.

See this week's Irish Farmers Journal for more analysis and an interview with CEO Jason Hawkins