Wiseman announces retrospective farm gate milk price increase
Published 12 April 2007

Robert Wiseman Dairies has confirmed that it is to increase the farm gate milk price and backdate it to the beginning of March. An increase of 0.43ppl (pence per litre) in the base price will mean the annual average price for the Wiseman Manchester contract will be 18.97ppl (using the MDC Standard Litre milk profile).

There is to be a further increase of 0.2ppl in the base price from April 1, which will make the annual average price of the Manchester contract 19.17ppl.

Wiseman’s Sainsbury’s Direct Development Group has an even higher base price, and using the MDC Standard Litre milk profile the annual average price will be 19.54ppl for this group.

The Sainsbury Direct Development Groups were set up under the guidance of a Sainsbury Dairy Development Manager with the aim of helping the producers cut costs and increase efficiency and improve relationships through the supply chain. Justin King, chief executive of Sainsbury's has promised investment funding for members of the group who meet certain environmental and animal husbandry standards. There is also to be money available for group members to make investments enabling them to differentiate milk supply and produce goods with higher value added.

All these schedules will be valid for one month as the milk prices for May onwards have yet to be announced .


Wiseman reported that some of its retail customers have recognised the rise in costs for both farmers and processors and have increased retail prices, passing the extra back to the processors. For further details on the increase in the retail price of milk please click here. However, Wiseman also commented that there are other sectors of the market, such as the middle ground, where competition between dairies is fierce.