Meadow Foods, the UK’s largest independent dairy and leading supplier of milk based dairy ingredients to the food industry, reports a pre-tax profit of £13.7m on a turnover of £376m. The results reflect the strong demand from major food manufacturing groups for the company’s specialised dairy ingredient products.
The profits generated continue to be re-invested in the business as part of Meadow Foods’ long-term investment plan.
During the year ended 31 March 2015, over £3.9m has been spent on plant upgrades across the group, with £1.9m on the Chester based Reverse Osmosis skim and milk concentration plant, £1.1m on upgrading the refrigeration and power supply to the Peterborough plant as well as a number of smaller projects totalling £0.9m to ensure the company maintains its industry leading manufacturing capabilities.
A further £6.5m investment commenced in the year ending 31 March 2016. The expansion of the Peterborough plant continues with a further £3m being spent on doubling its processing capacity. A further £2.3m is being spent at Chester to upgrade its effluent treatment plant and £0.6m is being spent at Holme upon Spalding Moor, commissioning a new soft cheese plant.
In October 2015, Meadow Foods also announced the launch of a range of products specifically targeted at wholesalers, caterers and restaurant businesses. The new food service business, trading under the Green Valley Dairy brand, will maximise the use of the company’s exiting manufacturing and distribution capabilities and allow the business to enter new markets.
Simon Chantler, Executive Chairman, comments, “We are pleased to report strong results and cash flow for year ended March 2015, as the profits have allowed us to continue to reinvest in the business, which is crucial to processing the increased milk supplies we’ve experienced this year.
“Last year began with a record milk price to our farmers but excessive milk supply throughout the UK and Europe has led to a collapse in dairy products sales prices and then in ex-farm milk prices. This trend has continued in this current financial year and in line with other dairy companies and farmers alike, Meadow Foods has found the environment extremely challenging with this trend likely to continue for some time.
“It is important for both our farmers and customers that Meadow Foods has well invested facilities to allow it to handle the increased milk being produced and to produce quality dairy products.”
Meadow Foods operates from factories in Chester, Peterborough and Holme-on-Spalding Moor. The company, founded in 1992, now employs more than 275 people.