Graham's The Family Dairy Absorbs Costs to Support Consumers Amid Inflation

Graham's The Family Dairy, a prominent Scottish dairy company, recently announced a significant impact on its profits as a result of absorbing increased costs to alleviate financial pressure on consumers. The company's turnover for the financial year ending March 2025 rose to £154.9 million, compared to £153.1 million in the previous year. However, its pre-tax operating profit dropped from £4.5 million to approximately £2.6 million.

Managing Director Robert Graham explained that the decision to not fully pass increased costs to customers was made to ease inflationary pressures. Over the past year, the farm gate milk price surged from 36p to 40p per litre, alongside rises in packaging costs and the national living wage.

The company has continued its capital investment program, investing £3.2 million in modernizing its manufacturing sites in Nairn and Cowdenbeath. This follows previous investments of £5 million last year and £8.4 million in 2023.

Graham's The Family Dairy reported a significant increase in demand for its Jersey and organic milk ranges, allowing it to recruit new Jersey farmers. Additionally, the company expanded its cottage cheese production and launched its first protein ice cream range, securing new distribution deals with premium retailers like Waitrose, Sainsbury's, and Booths.

Most recently, the family-owned business was recognized as the Scottish Dairy Farm of the Year at the AgriScot 2025 awards, celebrating its innovative use of technology and commitment to animal welfare.