Wisemans Increase Milk Price
Published 20 July 2007

Robert Wiseman Dairies will increase the price paid to its farmers by 0.71ppl from 1 August 2007. The move reflects an increase in the market value of cream in the first quarter of 2007.

Between April and June 2007, cream income to a liquid processor has increased from 4.67ppl to 6.39ppl, an increase of 1.72ppl. However, this calculation is based on the spot value of cream. If a large proportion of cream is sold on forward contracts, where prices are negotiated in advance of delivery, it is possible that processors may be receiving less that this if prices were negotiated in the past at lower prices.

In addition, Wisemans has announced it will pay 25ppl for additional milk (over and above production last year) produced between August and November this year.