Milk price hike hits Dean Food profits

Dallas, Texas: Dairy company Dean Foods has reported a 29.4% decrease in half-year net profit to $91.4m (£45m) on sales up 10% to $5.5bn (£2.7bn). The company said profit had been hit by rising raw milk prices and an oversupply of organic milk. "Our results are reflective of the volatile environment we are operating in," said chairman and CEO Gregg Engles. "Raw milk prices have increased through the first half of the year, and have recently hit all-time highs. At the same time, promotional pricing and investment behind the Horizon Organic brand during this time of raw organic milk oversupply has dampened profit growth."