UPDATE 1-Dairy Crest Q1 as expected, Chairman leaves

* Says first quarter trading in line with forecasts

* Dairies business better than previous year

* Chairman Simon Oliver to stand down

* Says continues to look at final salary pension scheme

LONDON, July 16 (Reuters) - Britain's Dairy Crest (DCG.L) said trading for the three months to end June had gone as expected with an improvement in the group's dairies business, while Chairman Simon Oliver will leave in January.

The company, which supplies milk, cheese and butter under brands such as Clover, said in a Thursday statement that milk sales were up, although this was offset by lower prices.

"Although the markets in which we operate remain difficult ... we have had a good first quarter and are well placed for the remainder of the year," Chief Executive Mark Allen said.

The group added that it continued to look at the future of its final salary pension scheme.

(Reporting by John Bowker, Editing by Ben Deighton)