Leading Welsh cheesemaker and farmer co-op South Caernarfon Creameries has recorded profits of £4.1 million and a 17% increase in sales to a record-breaking £71.5 million for the year ending March 31, 2022.
The business has boosted turnover and profits at the same time as investing £3.8 million back into their investment programme Project Dragon, a five-year £20 million plan to boost production at its Chwilog dairy near Pwllheli.
That will see cheese production at Wales’s most established and largest farmer-owned dairy co-operative increase from its current 16,000t a year to 23,000t by 2024 with an extra 30 jobs created at the creamery taking its workforce to over 160.
Project Dragon also includes new facilities for milk reception, additional cheese production and packing with work continuing to improve environmental and energy performance.
South Caernarfon Creameries managing director Alan Wyn Jones said:
“Good progress has been achieved in what has and continues to be a very challenging period for everyone as well as the unimaginable circumstances in Ukraine adding to supply chain issues caused by the post-pandemic reopening of the economy.
“Despite that the business has performed strongly, increasing turnover in volume and value and with profits again up on the previous year at 5.8% of sales, above our five-year average of 4.9%.
“The pandemic led to increased sales in our largest market, UK retail, with strong consumption in the home and business to business sales performing better than expected.”
Wyn Jones said that demand has continued to recover in the smaller wholesale markets and in foodservices though not yet to pre-pandemic levels but the company has made better than expected profits while providing members with one of the “most competitive milk prices in Wales”.
“This was achieved at the same time as a major investment in Project Dragon which has seen the new effluent treatment plant completed with work starting on the whey processing facility that will be operational by autumn 2023.”
