overseen by Managing Director Nigel Lloyd and predecessor in the role, his father John
A Caerphilly-based butter manufacturer has reported “satisfactory” financial results, despite a “significant” fall in the price of dairy products.
Castle Dairies, based on Pontygwindy Industrial Estate, saw its turnover fall to just under £18 million in its company year end to October 31, 2015, compared to £20.4m the previous year.
However, the company is looking to future markets at home and overseas with the launch of a new pack butter which is spreadable straight from the fridge.
According to the latest set of accounts filed at Companies House, pre-tax profit fell to £378,507 from £666,762 the year before.
In a director’s report accompanying the accounts, the company described the results as “satisfactory”, given “significant deflation within the dairy cabinet and milk prices”.
However, it also said it had completed a significant investment programme to allow it to manufacture dairy-based spreads in a tub.
Managing Director Nigel Lloyd explained to Caerphilly Observer: “We are in commodities at the end of the day and values go up and down.
“Last year there was a significant fall in milk prices and significant falls in butter values, both in retail and wholesale.
“Broadly speaking [the amount we sold] remained as it was the year before.”
The company is celebrating its 50th anniversary this year and was originally set up in 1966 as a milk bottling dairy and cheese maker.
In 1986 the business was acquired by John Lloyd, who originally joined the company as a delivery driver in 1968.
Mr Lloyd’s son Nigel joined the company in 1990, before taking over the Managing Director’s position on Mr Lloyd Snr’s retirement in 2000.
The business now makes butter under its own brand and others, and recently launched a new product it hopes will take the sector by storm.
Spreadable straight from the fridge and not in a tub, Softer Butter has already hit the shelves of supermarket Morrisons and will soon be in Tesco.
Castle Dairies is also aiming to crack the North American market with the product, which uniquely for a British-made product, contains no vegetable oil.
Mr Lloyd added: “I am confident that flexible small and medium-sized firms like ours can take advantage of opportunities as they present themselves. I am due to visit North America in September to look for export opportunities into these new markets – perhaps this is the future for UK exporters who may now need to look beyond the EU.”
Castle Dairies is one only a handful of local businesses still open that I remember as a child. I wish them every success with their new spreadable product but I hope they continue with their existing range, as ‘Welsh Salted’ is a my favourite. I have two 250g blocks in my fridge, great for everything from spreading on toast to frying pancakes – lovely!
Nothing about all the people they made redundant recently!