Wiseman increases milk price to 20.22PPL

The move reflects an increase in the market value of bulk cream in the last quarter, and brings the Company’s standard litre milk price to 20.22 ppl, up by 1.47 ppl since March 2007.

In addition, Wiseman has announced that it will pay 25 ppl for additional milk produced by dairy farmers between August and November this year.

The incentive scheme is designed to encourage dairy farmers to produce more milk with the 25ppl applying to litreage over and above production in the same period last year.

The company has also confirmed that over 90% of Wiseman’s 750 producers, which provide circa 60% of Wiseman's milk requirements, are likely to benefit from participation in either the Tesco Sustainable Dairy Group, or the Sainsbury Dairy Development Group, by the end of 2007.

Members of both groups will benefit from significant additional premiums over and above the Wiseman standard litre price.

Pete Nicholson, Milk Procurement Director at Robert Wiseman Dairies said:

“This increase in our farm gate milk price relates directly to the strengthening of the commodity market for bulk cream, and we are happy to pass the benefit of this to dairy producers.

“Additionally, with 25ppl for additional litreage, members of the Wiseman Milk Partnership have a real incentive to produce more milk over the next few months.

“Whilst this is good news, it is important not to lose sight of fierce competition within the middle market, from which we generate a third of our sales.

“We continue to buy milk from producers at a premium in excess of 2.0 ppl over and above certain competitors in this sector. We must ensure that we can continue to compete and maintain our share of this important market.”

Andy Bloor, Chairman of the Wiseman Milk Partnership said: “Wiseman has reflected increased returns generated from its exposure to the commodity market for cream and again asserted its position as the premium payer in the liquid milk sector.”