Dairy Farmers of Britain showed a small improvement in operating profit and turnover last year, according to its latest financial results.
Turnover for the year ending 31 March 2006 rose from 594m to 609m. Total group operating profit grew almost 4m to 25.4m while pre-tax profits were up 1% to 16.86m.
A spokesman said the profits included the 1p/litre capital contribution paid by members on the 1.8bn litres of milk supplied by them to DFB.
“We are not aiming for our balance sheet to show a massive profit sitting in our bank account. We pay back as much as we can to our members each month.”
About 53% of the milk produced by DFB’s membership is now processed by the co-op but the full value of its recently launched Dairy Farmers of Britain and Farmers’ Best brands and new add-value products like Wotz in it 4 Me flavoured milk had yet to have a major impact on turnover.
However, their contribution meant DFB had not had to cut its milk price by as much as other milk buyers, said the spokesman.
“It has been a year of consolidating an improving efficiencies. We have introduced brands but they are not selling in huge quantities.
“We’ll be spending a lot more on advertising this year and have got dozens and dozens of new ideas.”
Chairman Robert Knight, who, according to the company results, was paid a total of 508,000 during the year said: “We have invested significantly in the past year to create a first class commercial proposition. We expect our branded sales to make good progress.”