Wyke Farms shrugged off difficult butter trading conditions to post a slight increase in profit for the year to 31 March 2017.
The cheesemaker had to contend with a near £1m loss in turnover from its butter division as a result of increasing world demand for butterfat, according to its latest accounts.
But despite this, Wyke delivered flat turnover, with sales falling slightly by £82,000 to £67.46m, while operating profit rose from £3.56m to £3.74m.
Buoyant export volumes alongside improved margins from its cheese operation in the first half of the financial year (due to lower farmgate milk prices), helped offset price increases during the second half - which would see the supplier paying a price some 48% higher than the same period in 2015/16.
The financial year also saw Wyke continue to process organic milk for Omsco, a relationship that ultimately led to the creation of a joint venture between the two businesses in November with the aim of becoming the world’s largest organic cheese supplier.
It also invested some £4.45m in a new biogas facility as part of its renewable energy business, with the Wyke board stating they were “pleased” with the period’s results.
“The board believes the business will continue to secure better margins through its commitment to export markets, grow its top tier offerings to UK multiples, and take advantage of the growing market for organic products,” the report said.
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