The dairy group, Robert Wiseman has reported a 30% drop in drop in profits. The company has revealed that the main cause of decline in profits was high cost of raw material, which in turn led to an increase in price charged. The profits of the group were at £34m.

The group has described the current economic and market situations as challenging for the growth. The group said that the drop in profits was in line with the expectations.

The company said the rising costs of fuel and raw materials had all the dairy farmers which means they have to pay high prices to their suppliers.

Executive Chairman of the company, Robert Wiseman said, “Despite oil-related headwinds our business remains strong, profitable and cash generative and we are focused on reinforcing our position as the most efficient company in the fresh milk sector”.

Meanwhile, this year, Robert Wiseman has agreed to increase the volume of milk supplied to Tesco by 10% and has won a three-year extension to its Sainsbury’s contract from October last year. It has also increased the capacity at its Bridgwater dairy plant by 500m liters a year which will be helpful in improving the economic state of the company.