Welsh creamery opens recruitment book after record sales

Welsh dairy co-operative Caernarfon Creameries is looking to expand production by recruiting more producers, having recorded record sales figures in 2017-18.

The North Walian milk processor, with 127 farmer owners who produce about 12,500t of cheese and butter a year, posted sales of £45m in the year ending March 2018, a 36% increase on the previous year.

See also: How to minimise milk fat depression

Following a £12m investment in new state-of-the-art cheese production facilities and the redevelopment of a packing plant, the milk buyer is looking to recruit more dairy farmers to ramp up cheese production by more than 13,000t within two years, as well as targeting markets in the EU and the United Arab Emirates.

Caernarfon is looking to bring on producers with a level year round milk production profile across North and Mid-Wales.

At the end of June, the processor increased its manufacturing milk price with constituent contents of 4.2% butterfat and 3.4% protein by 1.25p/litre for August.

The rise means the co-op’s members will receive 29.78p/litre from next month, the equivalent of 27.6p/litre for liquid litres with constituent contents of 4% butterfat and 3.3% protein.

Would Caernarfon Creameries be a good fit?

  • Looking for producers based in North and Mid-Wales
  • Farmers with a flat all-year-round production profile
  • Producing milk with manufacturing constituents
  • Currently pays 29.78p/litre (manufacturing litres)
  • 27.88p/litre average price over past two years

In 2016-17, members were awarded a 0.5p/litre script dividend and between November 2017 and February 2018 the milk buyer also paid producers a 0.5p/litre winter premium to reflect higher farm input costs over that period.

Caernarfon Creameries managing director Alan Wyn Jones said new producers were needed to join the company because of increasing demand for cheese and butter in several markets.

“Demand and further opportunities to add value persists and we need more Welsh manufacturing milk to support our growth plans. South Caernarfon Creameries pay one of the best prices in Wales with no games and a straight forward pricing schedule. We are 100% Welsh farmer-owned – by farmers for farmers.

“We work hard to innovate and take advantage of new technologies to ensure we produce the highest quality products on their behalf,” Mr Jones added.

“Our aim is to produce fantastic products, give unbeatable service to our farmer members and our customers, and to work on delivering new and different products to continually entice consumers.”

Mr Jones added that South Caernarfon Creamery had along and trusted heritage and were well invested and are growing.

Futures markets and commodity risk management online course:

  • Risk management strategies for a more predictable financial performance
  • Educated conversations when collaborating with your advisors
  • Negotiate better prices with your grain merchants

View course