20th Jan 2015 07:42
LONDON (Alliance News) - Dairy Crest Group PLC Tuesday said it has retained its contract to supply fresh milk to Wm Morrison Supermarkets PLC for a further three years, although it will supply about a third less milk than it had been supplying to the grocer previously.
In a statement, the dairy company said it does not expect the volume decline to materially affect its financial results for the current financial year ending March 31, 2015. However, the volume decline only comes into effect in March.
Dairy Crest said it will also continue to supply Morrisons with cheese, flavoured milk, butter and spreads.
The news comes as UK milk prices have fallen sharply in recent months, largely due to factors outside the UK. In particular, Russia's ban on EU dairy products has cut EU milk exports to that country by billions of litres, pressuring milk prices across the bloc.
UK dairy farmers, facing sharply lower revenue, have been holding protests in a bid to force supermarkets to pay more for milk.
Dairy Crest said it will issue an interim management statement for the nine months ended December 31, 2014 on February 5.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Dairy CrestMRW.L