Arla Foods today (31 March) issued a positive trading update, expressing confidence that milk profit margins are on an upward trajectory and reaffirming that the UK dairy producer has not felt a knock-on effect after leading supermarkets cut the price of milk.

“At the moment, the price changes are totally the responsibility of the retailers – they have not passed costs along to us,” Nicola Hedge, an Arla spokesperson, told just-food.

The dairy group said that an in-line sales performance, 3% increase in milk sales, strong branded performance, cost saving measures and increased milk selling prices have allowed Arla to recoup some of the expenses associated with higher energy costs.