A food company warned that delays increasing the price paid by supermarkets like Bradford's Morrisons for its products would hit profits in the first half of the year.

Arla, the UK's largest supplier of butter and milk upped the selling price of its goods to counter rises in packaging, utility and energy bills.

But this happened more slowly than hoped, meaning profits in the six months to the end of March would be less than expected the Leeds-based company said.

Earnings for the following six months would be in line with expectations, it added in a statement ahead of the company's annual general meeting.

The price negotiations added a penny to the typical shelf price of a four-pint carton of milk, taking it to £1.16, Arla said.

The company supplies milk to Asda, Morrisons and Tesco following an industry-wide review of contracts which was carried out last year.