Farming News - Inflation hits Robert Wiseman Dairies' profits
Inflation hits Robert Wiseman Dairies' profits
Robert Wiseman Dairies has posted a 42 per cent fall in pretax profit for the first half; the group said rises in input prices were responsible for the loss. The dairy group blamed price increases for raw milk since March and touch economic situation making it difficult to recoup costs lost elsewhere.
The company supplies nearly a third of fresh milk consumed in Britain. The news comes after processor Dairy Crest announced strong half year profits, following efforts to increase efficiency. Dairy Crest said increased prices had allowed it to offset some effects of rising import costs.
Robert Wiseman said in a statement today, "We will remain focussed on reducing costs to protect our margins for the remainder of the year."
For the six months to 1st October, the company's pretax profit was £11.8 million, compared with £20.2 million last year. Wiseman has put up prices paid to its farmers three times since March, as they struggle with higher fuel prices. Plastics prices for bottles has also risen. The company said it hoped an organic milk contract with Tesco would help its situation improve.