Arla UK reports profit drop

Arla UK has ended its three-year strategic plan with a 3% drop in full year profits despite higher selling prices.

The UK branch of Arla Foods, the Scandinavian parent group, has improved slightly after a loss of more than 3% in the first half. A statement from Arla UK has said its recently completed new strategic plan has set it up well for the future, even though 2006 had proved difficult. The group’s fresh milk production costs were at record lows thanks to five dairy closures and improvement in distribution.