Having sold off its UK dairies business just over a year ago, which included its fresh milk, cream and butter operations, Dairy Crest is focusing its resources on spreads and cheese, but also on producing high-quality demineralised whey powder – a by-product of the cheese-making process – for the fast growing global infant formula market.
Mark Allen, Dairy Crest’s chief executive, said the company was in talks with a number of global manufacturers over future deals.
It’s also working with US chemicals giant DuPont and several British universities to develop the powder for use as an additive in chicken and pig feed to help promote a healthy gut.
As these products are exported overseas, they’ll have an edge over rivals, Mr Allen said, thanks to the depreciation of the pound against a basket of global currencies.
“That’s good for us as we make deals with big multi-nationals,” he said. “We don’t want to compete on price, but on quality, but having the pound at a lower value also helps us compete on price.”
He added that milk prices had risen further this year, so Dairy Crest would pay its farmers 30p per litre this month, up from 28p in January, marking a 38pc increase since last June.
It came as Dairy Crest reported steady trading in the first nine months of its financial year, with volumes flat on the year before. Shares in the company fell 6pc by mid-afternoon.
Source: Telegraph
Link: http://www.telegraph.co.uk/business/2017/02/09/dairy-crest-hails-weak-pound-looks-boost-exports/
