USA – Dean Foods has said that volatile milk prices, a tough retail environment and high fuel, resin and other costs are behind poor business performance.

As a result, it has issued a profit warning for the full year. Chief executive Gregg Engles said that pressures are “more intense than we expected”.

He added that the company’s speciality foods group had been seeing high commodity and pricing pressures. “We have seen sharply weaker demand from our co-pack customers in the nutritional drinks business, particularly in low carb beverages,” said Engles.