Australian dairy producer Warrnambool Cheese and Butter Factory Co. has seen full-year profits jump 19% on the back of higher sales and the rising price of milk powder.
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Warrnambool Cheese booked a 19% rise in operating profit to A$19m (US$16.2m) for fiscal year 2006/07. Turnover increased by 5.4% to A$371.7m.
The company pointed to higher sales volumes and a “late surge” in milk powder prices for its robust results. Around a third of Warrnambool Cheese’s revenue comes from milk powder.
The company said milk production was at a ten-year low in Australia with recovery likely to take “some years”.
The fall in supply and the resulting rising prices is likely to lead to “continuing pressure for industry consolidation within Australia”.
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By GlobalDataEarlier this year, Warrnambool Cheese signed a deal to form a venture with Netherlands-based dairy giant Friesland Foods.
The two companies agreed to set up a business to manufacture ingredients for the food, infant nutrition and pharmaceutical industries.
