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Dairy Crest Extends Milk Contract With Morrisons

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Dairy Crest Extends Milk Contract With Morrisons

September 30
09:15 2010

UK dairy group Dairy Crest has renewed its fresh liquid milk contract with retailer Morrisons through to 2015. “We are delighted to have been awarded this extension to our contract with Morrisons,” says Toby Brinsmead, managing director of Dairy Crest’s liquid products business. “We believe our clear focus on quality, service and cost puts us in a good position in a very competitive market.”

Earlier this year Dairy Crest secured a new contract with Sainsbury, Britain’s third-largest supermarket group, and this commences early in October 2010.

Sales of fresh milk to major retailers have continued to grow in the first six months, ending 30th September 2010, of Dairy Crest’s current financial year.

The middle ground liquid milk market also remains very competitive and has low barriers to entry. Dairy Crest’s sales volumes in this market in the first half are lower than last year.

Dairy Crest is in the process of a £75m capital investment programme spread over three years at its dairies division in order to improve the efficiency and infrastructure of its liquid milk operations.

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