Peder Tuborgh, chief executive of Arla Foods, told Reuters “the global milk market was in crisis due to oversupply, but expected demand, particularly from China to pick up by the end of the year”.

Fonterra also sees China returning to stronger import growth later in the year despite economic volatility.

Turnover

Arla is the largest dairy company in Britain and is the seventh-biggest dairy processor in the world. Profits for the company fell by 8% to €295m on a turnover of €10.3bn in 2015.

Arla Foods has moved from producing dairy commodities into added-value products by converting their milk supply into more expensive products such as its Lurpak butter and Castello cheese.

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