Meadow Foods has generated annual profits of almost £14m, which the Chester-headquartered company said reflects the strong demand from major food manufacturers for its specialised dairy ingredient products.

The business has posted pre-tax profits of £13.7m on a turnover of £376m for the year ending 31 March 2015.

During the year, more than £3.9m was spent on plant upgrades across the group, while a further £6.5m investment is planned for the 2015/16 financial year.

Simon Chantler (pictured), executive chairman of Meadow Foods, said: "We are pleased to report strong results and cash-flow for year ended March 2015, as the profits have allowed us to continue to reinvest in the business, which is crucial to processing the increased milk supplies we've experienced this year.

"Last year began with a record milk price to our farmers but excessive milk supply throughout the UK and Europe has led to a collapse in dairy products sales prices and then in ex-farm milk prices.

"This trend has continued in this current financial year and in line with other dairy companies and farmers alike, Meadow Foods has found the environment extremely challenging with this trend likely to continue for some time.

"It is important for both our farmers and customers that Meadow Foods has well-invested facilities to allow it to handle the increased milk being produced and to produce quality dairy products."

Meadow Foods operates from factories in Chester, Peterborough and Holme-on-Spalding-Moor. The company, founded in 1992, now employs more than 275 staff. 

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