Arla Foods has said that its trading remains in line with expectations.

In a trading update for the 12 months to 30 September released this morning, the dairy company said that its brands had performed strongly.

It reported that sales of Lurpak had increased 8% year-on-year, Anchor 5% year-on-year and Cravendale by 10% year-on-year.

It added that although fresh milk volumes to its three major supermarket customers were ahead by 6%, its total fresh milk sales were similar to the previous year.

“Our performance in the second-half will represent a significant improvement on the first-half,” it added.

Meanwhile, shares in dairy company Dairy Crest fell 28.5p to finish on 578p yesterday following the group's decision to sell the majority of its retailer brand cheese operations to First Milk for £61.9m. The shares fell as investors took profits.