Scotland’s largest independent dairy has blamed milk market instability for a drop in turnover and profits.
The Bridge of Allan-based firm yesterday reported a £2.9million decrease in turnover to £83.6million for the year ended March 31.
Pre-tax profits were also down to £1.43million, from £1.5million previously.
The company, which also has milk processing sites in Nairn and Fife, said 2015 had been challenging as a result of farmers producing more milk than the market could comfortably consume.
It said the oversupply of milk led to significant balancing costs for the company.
It said it had invested £1.4million during the year and the purchase of the Glenfield dairy site in Fife in November 2015 allowed the firm to expand its range to include quark, cottage cheese and sour cream.
Other developments included the launch of a new range of yogurts, produced from the Nairn factory, in September 2015 and a re-launch of the ice-cream range in March 2015 which resulted in a 66% increase in sales.
Managing director, Robert Graham, said: “We are pleased to have delivered a solid performance during what has been an incredibly challenging time for the entire dairy industry.
“As farmers ourselves who continue to milk our own cows, we understand the pressures farmers face and this is why we continue to pay them the highest price in Scotland. We truly value the relationships we have with our 100 farming partners and are committed to continuing an open and regular dialogue to the benefit of all of our businesses going forward.”
Company chairman Robert Graham Snr also confirmed the firm had put an end to its AB pricing and as of December 1 producers had been paid a traditional pool price.
The standard litre price currently stands at 23.5p a litre, however it is set to increase by 2p a litre on January 1.
All producers are also paid a separate retailer supplement, which during the month of October equated to 1.59p a litre.
