French dairy group Bongrain has warned that continued high milk prices mean its sales in the second half of 2008 will not match the corresponding period last year.

The company said yesterday (6 November) that the higher cost of milk and the economic slowdown would weigh on its performance, despite sales rising 4.5% during the third quarter of the year.

Third-quarter revenue reached EUR2.61bn (US$3.33bn) as "resilient" sales in France helped offset slowing cheese sales in central and Eastern Europe, southern Europe and the US, Bongrain said.