Central Lechera Asturiana blamed high milk and energy prices on Friday (16 June) for triggering a 30% fall to EUR2.8m (US$5.32m) in 2005 net profits.
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“Farmer milk prices rose 15% last year and this, added to high oil prices and foreign competition, has hurt our business,” an Asturiana spokesman told just-food. Asturiana’s revenues also fell 15% to EUR116m, the spokesperson said.
Leche Asturiana is a milk-farming cooperative owned by 2,000 producers. It holds a majority stake in Corporacion Alimentaria Penasanta (CAPSA), which sells Asturiana-branded milk and dairy products.
This year’s outlook “looks very similar” to 2005, the spokesman said, adding that the company hopes to raise net profits by 10%.
“We are negotiating better prices with farmers” and improving efficiencies wherever possible, the spokesman said.
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By GlobalDataAccording to the spokesman, Asturiana can’t pass higher farm milk prices to consumers because all products are commercialised by CAPSA, which will report 2005 results on 30 June.
