Robert Wiseman Dairies, the Scottish dairy producer that supplies milk to J Sainsbury, reported a 37 per cent decline in first-half profits and warned of a reduced outcome in the next six months due to a sharp reduction in the price of cream.

The group said profits may be reduced by up to £7m ($11m) in the second half, due to weakening demand in commodity markets, and warned it may have to pass on costs to suppliers and consumers in its larger milk business.