Although net sales for France’s second largest milk processor, Bongrain, edged up by 9.8% for the first half of 2008 compared with the same period in 2007, massive increases in raw material and energy costs reduced operating profit for the same period by 55.4% to just €37.4 million.

However, the dairy group – which produces cheese brands including Garamont, St Albray and Fol Epi – is optimistic about the rest of the year, with hopes for an increase in milk product prices alongside a fall in world prices for inputs.