Covid cheese demand helps Barber’s maintain profit

Barber’s Cheesemakers has recorded a pre-tax profit of £2.25m for the year to 31 March 2021, up from £1.87m during the previous 12 months.

According to the latest accounts for AJ & RG Barber (Sales), increases were also seen for turnover (by 5.3% to £83.87m), operating profits (by 13.1% to £2.31m), and net assets (by 4.6% to £39.25m).

The higher turnover and margin improvement were the result of converting an increased proportion of milk to more value-added cheese products, including longer matured cheddars and more speciality retail products for domestic and export markets, the directors’ report said.

See also: Aligned milk contracts: The pros and cons for dairy farmers

A significant feature of sales was the increase in sales of retail products (by 43%) as a result of the rise in eating at home due to the Covid-19 pandemic.

The directors praised the resilience, flexibility and dedication of the company’s workforce in delivering success during such a different and difficult year.

The completion of Brexit just prior to the end of the financial year on free trade terms presented a less disrupted trading environment with European customers than many had feared.

While exports to Europe were significantly more challenging in an administrative context, the process ran more smoothly as the year progressed and sales revenue derived from Europe increased by 49.5%, the report said.

The main long-term risks facing the business are: competition from domestic and imported cheese; the volatility of global dairy market pricing; competition for raw milk supplies; and the potential effect of adverse foreign exchange rates, said the directors.

In addition, due to Brexit and Covid-19, the last financial year has seen the emergence of increased risks relating to the availability of both permanent and temporary staffing; the availability and cost of national and international distribution services; and increased raw material pricing.