Dairy company Arla Foods UK has said trading for the six months to 31 March 2005 was in line with the board’s expectations.

The company said its brands continue to perform well; Lurpak is growing strongly, Anchor Spreadable Lighter has been successfully launched, and investment in increased Cravendale capacity at Stourton is on track to come on stream in the summer. 

Arla added that the supermarket milk business maintained volumes despite the a continuing competitive market.

“Inflationary costs identified in our January AGM statement have been recognised by our customers and recovered from the market place, however the continuing rise of the price of oil is a concern.  We are currently in discussions with our supplying milk producers regarding raw milk pricing from 1 April,” the company said.