Since following the strategy, South Caernarfon Creameries has seen great success. They have reinvested in the business and their brands and enjoyed a significant growth in retail sales, as well as introducing additional benefits for its member farmers.
In the past 12 months, the creamery introduced strategies to ensure that member milk price returned to a competitive position. Over the year, prices increased by 4.15 pence per litre to the current price of 26.25 pence per litre.
“South Caernarfon’s milk price is now better than many other dairy purchasers in north and mid Wales,” said Alan Wyn-Jones, MD at South Caernarfon Creameries.
Investment has also been paramount, with over £500,000 assigned to new systems and equipment.
“We’re simply investing in our future,” added Wyn-Jones. “The new stock and yield control system has helped productivity and efficiency, and we also invested in some new equipment. Essentially, we bucked the trend and invested £250,000 in a traditional butter churn. New, ultra-modern equipment wouldn’t have worked, as we needed to make traditional Welsh butter as authentically as possible. The traditional production methods provide us with a point of difference and address our strategic resolve to have products with extreme provenance; our butter is traditionally Welsh, produced and packed in Wales using Welsh milk from our member farmers.”
There has also been considerable growth in retail sales, with an additional £770,000 of products being sold direct to retailers during the past financial year, which is in direct line with the strategy to continue to move away from commodity driven markets.
South Caernarfon has sold more liquid milk, Welsh butter and pre-packed cheese, and undertaken major investment with their own brands. Its Dragon brand was relaunched earlier in the year and has seen huge success.
“The new packaging has definitely helped us to gain more listings with the major multiple retailers,” said Wyn-Jones. The company has also worked with the major retailers, offering a range of promotions.
It has also been a record-breaking 12 months, with the creamery receiving 24 awards for a wide range of cheese and milk products. These were bestowed from various prestigious organisations including, among others, The British Cheese Awards, Royal Welsh Show, Great Taste Awards and the Nantwich International Cheese Show.
Source: South Caernarfon Creameries
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