DC stays upbeat

UK – The latest trading statement from Dairy Crest revealed its disappointment at the termination of its milk supply arrangements to Tesco supermarkets as of 2005. It said this would not affect this year’s results, but significantly change the profits for 31 March 2006.

However, the company also reported a stable six months for its cheese business, but admitted struggling in the fresh dairy products market.

The poor performance by fresh dairy was the main reason that Yoplait Dairy Crest had previously announced the closure of its Enfield factory in early 2005, said the statement. This was despite Yoplait brands such as Yop, Frubes and Wildlife performing well.

The company said that mature and mild cheddar prices had held up on the back of lower industry stock levels , and that its Cathedral City brand had consolidated its position as the UK’s leading Cheddar brand. Frijj, the leading fresh flavoured milk drink, has also show strong volume growth.