Cream prices have risen at the same time as butter, creating a natural hedge the finance director at Dairy Crest says Oli Scarff/getty ImagesThe rising price of cream and butter sent profits back by almost three quarters at the spreads business of Dairy Crest, which produces the Country Life brand. Dairy Crest buys in the butter that goes into Country Life, leaving it susceptible to the open market price that has soared in recent months. However, the cheese side of the business benefited, as cream is a by-product of making cheese and was being sold for a higher price. “It’s a natural hedge,” Tom Atherton, the finance director, said. As a result, in three years of volatile dairy markets and prices Dairy Crest has been able to maintain margins at around 15 per cent.

Source: The Times November 09, 2017 17:06 UTC