Northern chief defends farmers

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"It's farmers who are putting prices up, not
manufacturers or retailers. But they have had a poor decade so I don't think we can blame them," he said. "They need to make a profit."

Barden unveiled a 25% rise in profits to £50 million for the year to the end of March, thanks to good sales of Northern's Fox's biscuits and Goodfellas pizzas.

But these goods are among those most affected by food inflation, while the sandwiches and salads it
makes for supermarkets remain relatively cheap.

Barden added: "People will change their buying habits."

Northern is likely to axe 700 jobs at its Fenland Foods site in Lincolnshire after Marks & Spencer failed to renew a ready meals contract. Barden praised the site and its staff but said without a new deal the jobs could go, depending on the outcome of consultation. The dividend rises 6% to 4.5p.