A leading Welsh dairy co-operative have reported a record profitable year for the period to March 2017.
South Caernarfon Creameries near Pwllheli has reported an operative profit of nearly £3 million (9%) on sales of £33.1 million was achieved compared to a profit of £389,000 (1.2%) on sales of £31.7 million in 2016.
In its annual report, sent out to its farmer Member shareholders last week, states that 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.
Alan Wyn Jones, Managing Director commented: “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 in 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 circa 130 local full-time staff having increased its workforce by 30 during the year.
The co-operatives Board of Directors are to propose a script dividend to its 127 farmer Members which is equivalent to 0.5ppl of their annual milk production; this will result in the average Member receiving £3,750 in additional shares.
