Profits rise for dairy processor Meadow Foods

Meadow Foods increased its pre-tax profits by more than 22% to £13.7m in the year to 31 March 2015.

This result was achieved on a turnover of £376m for the UK’s largest independent dairy, compared with £420.7m in the previous year.  

The results reflected strong demand from major food manufacturing groups for the company’s specialised dairy ingredient products, said a Meadow Foods statement.

The company said it was reinvesting profits in the business as part of a long-term plan, which saw more than £3.9m spent on plant upgrades across the group in the year to 31 March 2015.

A further £6.5m investment is under way in the current year with the expansion of the Peterborough plant, upgrading of the Chester plant’s effluent treatment facility and a new soft cheese plant at Holme upon Spalding Moor in Yorkshire.

See also: Milk contract changes anger farmer suppliers

“Last year began with a record milk price to our farmers but excessive milk supply throughout the UK and Europe has led to a collapse in dairy products sales prices and then in ex-farm milk prices,” said executive chairman Simon Chantler.

“This trend has continued in this current financial year and in line with other dairy companies and farmers alike, Meadow Foods has found the environment extremely challenging with this trend likely to continue for some time.

“It is important for both our farmers and customers that Meadow Foods has well-invested facilities to allow it to handle the increased milk being produced and to produce quality dairy products.”

Meadow Foods was founded in 1992. It has more than 550 farmer suppliers and employs more than 275 people.