Danone, the French yogurt company has warned that it is expecting a “steep rise” in milk prices.
The firm, who make Actimel and Activia commented that the rise would weigh on profits, however the company didn’t say if it would need to increase prices but they would be applying cost cuts worth 1 billion euros (£850 million).
Danone, who also sell Cow & Gate baby milk and Evian water stated that it was targeting profit growth for this year of over 5%, a decrease from 9.3% the previous year.
The price for milk began increasing in 2016 and in December the average UK farm gate cost was 26.2p a litre which is a 9% rise from the previous year.
