Cornwall’s Trewithen Dairy has seen sales jump to £56.3m and is now looking to sign up more farmers to supply it with milk.
The Lostwithiel-based company enjoyed a 8% hike in turnover for 2020/21, up from the previous financial year’s £52.1m, new accounts show.
This “satisfactory growth in its sales revenues” led to a pre-tax profit of £1.6m - up from £1.4m in 2019/20 - which the company said reflected on an increase in sales, an improved sales mix and a continued focus on maintaining cost control. The balance sheet also strengthened with total net assets increasing by £1.2m to £7.6m.
Trewithen Dairy said the financial results show that, against the “challenging backdrop” of the Covid-19 pandemic, the business continued to grow and develop as a result of organic customer growth and significant new customer wins and retentions.
These and strategic investments are now providing a platform for growth and it needs more high-quality milk from Cornish dairy farmers.
The business stressed it maintained its commitment to supporting a group of Cornish dairy farmers, who are passionate about “delivering the highest levels of milk quality, animal husbandry and welfare”.
ItsTrew Farming standard, which became fully auditable from February 2020, is a standard which includes a commitment from all Trewithen Dairy farmers to graze their cows for a minimum of 120 days per year, monitor herd health and welfare, record their carbon footprint and work collaboratively to share best practice.
In turn, Trewithen Dairy has recognised the importance of establishing “close and strong relationships” with its farmers and stressed it is paying them, on a sustainable basis, a competitive price for their milk which guarantees they will receive a premium above a basket of other South West milk buyers’ prices.
The business also undertook strategic investments and initiatives which will provide a platform for longer term growth and profitability. This included a significant investment in its regional distribution capabilities through establishing a wholesale division, and acquisition of Lillie Brothers, the Falmouth-based dairy produce supplier.
The dairy company also launched The Earth Milk sustainability project focused on supporting, initially two pathfinder Trewithen Dairy farmers to adopt innovative regenerative farming techniques to measure and improve their impacts on soil carbon retention, biodiversity and water quality.
Trewithen Dairy, the trading name of Cornish Farm Dairy Ltd, is a family-run producer of Cornish dairy products, founded in 1994 and owned by chairman Bill Clarke, wife Rachel and sons Francis and George.
Bill Clarke said, “During the year, the business performed satisfactorily, strengthening at a financial, commercial and operational level. At the same time, we undertook a number of strategic investments and initiatives which we believe will provide a platform for future, longer term, growth and profitability improvement.
“This in turn will mean that we will require more high-quality Cornish milk to process into a growing range of award winning dairy products.”
Francis Clarke, Trewithen Dairy’s managing director, said: “Thanks to an increasing demand for our award-winning dairy products from existing and new customers we will require more Cornish milk.
“As such we are not only seeking to encourage our existing farmers to produce more, but also, looking to recruit on a selective basis new farmers into our milk pool; Cornish farmers that share our values and standards and want to be part of a Cornish dairy business that is growing and ambitious for the future and one that believes in paying its farmers a sustainable milk price which guarantees a premium above a basket of other South West milk buyers’ prices and will provide them with strong and stable foundations for the future of their dairy farm businesses.
“We are a family with generations of dairy farming heritage who enjoy working closely with farmers and involving them in the development of the Trewithen business and brand.
“In doing so, we shorten the chain between those who consume our products and the farmers who produce the milk that goes into them, which in turn builds trust in the Trewithen brand and, we know from their feedback, gives great satisfaction to our Farmers.”
Trewithen Dairy is a processor of fresh liquid milk, the second largest producer of clotted cream in the UK and also produces a growing range of pouring creams, Cornish Butter, yoghurts and buttermilk. It employs more than 230 people at its dairy processing facility and is one of the leading dairy and food manufacturers in Cornwall.
In 2014 Trewithen Dairy completed a £12m investment into its fresh liquid milk and dairy ingredients processing facility where it produces Trewithen Dairy branded and customer-label Cornish milk, butter, yoghurt and clotted cream. It now supplies an increasing number of customers including major retailers, symbol groups, wholesalers and food service operations located across the South West and further afield.
