An international market with more cheese on offer than usual and soaring milk prices in the second half of 2007 means Swiss-based Emmi Group will probably fail to meet its growth targets for the year.

While the profit margin in 2006 was 2.3% with a 2007 target of 2.5%, results so far indicate the final figure will be nearer 1.5%. Over the first six months of the year turnover was up by 10.3% but even that brought a profit margin of just 1.9% or CHF 22.7 million (