Arla UK ended its three-year strategic plan with a three per cent
drop in full year profits, after higher selling prices failed to
save the dairy group from high input costs in the first half.
Arla UK announced it would make more controversial cuts to farmgate
milk prices and fine producers for churning out too much milk, as
cost pressures on the dairy industry intensify.
The UK branch of dairy processor and ingredients supplier Arla
Foods told investors yesterday that it is still on track to reach
revised profit targets for the year, boosted by its brands
performing well.
The Competition Commission's decision to investigate the proposed
merger between Arla UK and Express Dairies could have an adverse
effect on profits at the latter group.