Shares in Arla Foods dropped 1.25p to 52p yesterday compared to its milk rivals Dairy Crest, up 5.25p to 370p and Robert Wiseman Dairies, who remained steady at 201.5p.

The drop in share price for Arla follows concerns that the company could loose milk contracts with Tesco and Sainsbury after becoming the sole supplier to supermarket competitor Asda, according to newspaper reports.

Earlier this year Asda said it would source all its milk, which totals around 450m litres a year, from Arla and it terminated contracts with Dairy Crest and Robert Wiseman in the process.