LACTALIS, operator of the Caledonian Cheese Company at Stranraer, has declared pre-tax losses of £16.4million, as its revenue fell 6.5% to £187million for the year ended December 2015.

According to accounts filed with Companies House, the result is a worsening of the position recorded in 2014's accounts, which included a loss of £3.8m.

The company's brands include Seriously Strong, President and Galbani, as well as Rachel’s organic yoghurt. The bulk of the decline in revenue came from falling UK sales, down £10m to £165m. Within the EU, sales fell to £20m from £22m, and in the rest of the world sales more than halved to £3m.

In his statement accompanying the accounts, company director Mark Taylor said: “The year has been difficult due to the challenging trading environment, with the market for dairy products remaining highly competitive. Milk price fluctuations have led to falling stock value of cheese and falling market price for cheddar manufactured at high milk price which have been in storage for over 12 months."

However, Mr Taylor said that company remained committed to investing in its business: “Key focus for 2016 will be to continue investing in people, manufacturing efficiencies, brands, products and process innovation. Good progress has already been made in these areas, with benefits beginning to accrue to the business.”

Meanwhile Dairy Crest has issued its pre-close trading update for the six months ending September 30, ahead of announcing its interim results on November 10 – and it expects half-year profits to be ahead of last year.

Mark Allen, chief executive said: “Dairy Crest expects to report a good performance in the first half of this year. Recently we have seen inflation across all dairy markets."

On that front, Dairy Crest has announced a further 1.5p per litre farmgate increase, to be phased in over two months from October 1, with a 1ppl increase made to the October price and a further 0.5p applied from November 1.