Wiseman increases milk price
Published 12 May 2008

Robert Wiseman Dairies has announced today that it is to increase its milk price by 0.5ppl from May 1. Using the DairyCo standard litre, this price increase would take the standard Wiseman annual average price to 26.08ppl.

This announcement is made the same day as Wiseman released it’s preliminary results for the 2007/08 financial year (these can be found at: http://www.wiseman-dairies.co.uk. These show a strong financial performance for the last financial year. Sales, turnover and adjusted operating profit have all increased.

This price rise is made despite a fall in the value of bulk cream. DairyCo’s calculation of indicative cream income to a liquid processor shows that income fell by 2.95ppl between October last year and April 08 to 5.31ppl. However this is 0.64ppl (13.7%) higher than 12 months previously.

This positive news for British dairy farmers highlights the peculiar situation the industry is currently facing: although commodity prices have fallen recently, tight supply and competition between milk buyers have helped to maintain or increase milk price.

Coming shortly after Dairy Crest increased the price it pays to its cheese producers, this decision from Wiseman will put other buyers under pressure to at least hold their price, if not follow this move.