Carr’s Milling Industries has said that it is on track for sales growth in 2006, despite the languishing trade in animal feed.

Chairman Richard Inglewood told the company’s annual general meeting that the first four months of trading (Sept year-end) had seen good performance in the flour and the machinery businesses, with mixed sales in the animal feed division.

Carr’s has sold more feed blocks than it expected, said Lord Inglewood, but sales of compound feed were below expectation.

“The marketplace is experiencing a noticeable reduction in demand both in our trading area and in the UK more generally,” he said.

A new feed block plant is set to be commissioned in Oldenburg, Germany in February, as part of a joint venture.

Flour sales were ahead of expectations, he added.