Lifeway Foods, the US firm behind probiotic drink Kefir, has seen soaring milk costs hit quarterly profits.
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The company posted a 4% fall in gross profits to US$2.7m, as the cost of milk soared 100% against a year ago. Turnover, however, continued to be buoyant, with sales up 32% to $9.8m.
“The cost of milk hit a record high in the month of September, and has since dropped slightly in October, a trend we hope but cannot be assured of continues,” said Lifeway CFO Edward Smolyansky.
“Despite record high milk and transportation costs, as well as operating in an environment where most of our other production related costs are increasing, we were able to maintain relatively healthy margins.”
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