United Dairy Farmers benefits from added-value growth

United Dairy Farmers has announced an increase in pre-tax profits after sales in its processing subsidiary, Dale Farm, increased by almost 6%.

Pre-tax profits for the year to 31 March increased by 15% to £3.08m, following strong sales in the dairy’s added-value products, including Dale Farm, Rowan Glen and Loseley brands.

Despite the increase in turnover, the dairy’s commodity sales fell by 7% to £35m.Group turnover also fell 1% to £292m.

David Dobbin, United group chief executive, said the drop in commodity sales was due to lower prices as a result of CAP reform.

The group results reflected a long-term plan to reduce costs and a commitment to drive added value sales, with 22 products launched during the year, he added.

“Commodity sales represented only 25% of total sales, compared to 75% six years ago, demonstrating the group’s success in driving growth with added value categories,” he said.

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