Bakery firm Finsbury Food warns of soaring butter prices

Joanna Bourke
Baker Finsbury Food Group is having to cope with higher costs for butter: Cultura/Line Klein/Getty

The cost of some baked goods could rise because of soaring butter prices, the boss of cakes-maker Finsbury Food Group warned on Monday.

John Duffy flagged that rising demand, coupled with a decline in milk production, has led to a jump in the price of the dairy spread it uses in a number of products.

He added: “I can’t recall butter at such high prices, so I think it is inevitable that we are going to have to put up some prices on butter-led products until the costs we are paying for ingredients comes down.”

His comments came as the firm revealed like-for-like revenue growth of 0.3% to £314.3 million in the year to July 1.

Finsbury Food is hoping a new range with cakes queen Mary Berry will boost sales this year.

The company added it is confident of delivering profits in line with market expectations.

The shares fell 2.48p to 113.52p.