Two leading dairy companies say they are on track to hit profit targets despite falling farm gate milk prices and rising oil prices.

In a trading update published ahead of the close period for interim results, Robert Wiseman Dairies said it expected to post record turnover and milk volumes for the full year, which ends in April.

New business from Morrisons starting in October would boost volumes, a spokesman explained.

Analysts said full year pre-tax profit would hit the £24m mark, down from nearly £29m last year.

Dairy Crest also published a positive update pointing to strong performance by its branded dairy products.

Pre-tax profits for the year were still on track to reach £76m, according to Numis Securities.

Marion Mulcahy, an analyst with the firm, said DC’s branded portfolio, including Countrylife butter and Yoplait yoghurts, had helped shield the company from some of the problems facing competitors.