Dairy Crest Price Rises See Sales Increase
Posted on: Saturday, 19 July 2008, 00:00 CDT
CHEESE and milk producer Dairy Crest said yesterday it was continuing to pass on higher milk costs to customers as inflationary pressure showed no signs of abating.
The group said sales in its dairies division rose 5 per cent during the three months to June 30, "principally reflecting the impact of price increases to recover higher raw milk and commodity costs".
Sales at Dairy Crest's foods division - products include Cathedral City cheddar, Country Life butter and Utterly Butterly spread - were 14 per cent ahead during the quarter, driven by "strong" growth as well as price rises. The Surrey-based firm said sales of Cathedral City were now Pounds 173m a year - up 15 per cent from January - cementing its position as the UK's biggest cheese brand.
Last year the group passed on a 35 per cent rise in milk costs to customers as farmers were hit by higher fuel and feed costs.
Dairy Crest, whose customers include the 'big four' retailers of Tesco, Asda, Sainsbury's and Morrisons, said it had paid a premium of 0.3p per litre to all its dairy farmers since the start of June thanks to higher prices paid by Morrisons.
"UK production levels remain very tight and farmers are facing further rises in on-farm costs," it added.
The higher milk prices saw underlying volumes at the group's doorstep milk delivery business, Express Dairies, worsen "slightly". Delivered milk prices have risen from around 53p a pint to between 55p and 59p a pint since last September.
(c) 2008 Yorkshire Post. Provided by ProQuest Information and Learning. All rights Reserved.
Source: Yorkshire Post
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