Robert Wiseman Dairies increases the price of milk it sells to major supermarkets

“During the last six months there have been exceptional cost increases throughout the supply chain from increased feed costs incurred by our milk suppliers to the higher packaging and oil related costs incurred by ourselves, it said in a pre close trading update.

“These costs have increased further over the last couple of months, with derv now some 20% up on summer 2007.

“In our Trading Statement on 30 January 2008, we advised that a selling price increase would be necessary if these costs persisted.

“We have begun implementing higher selling prices to cover these cost increases, which will also allow an increase in the price paid to our milk suppliers.

The company’s sales volumes and turnover for the year ending 29 March 2008 are “in line with forecast,” it said, adding, “the Company is confident it will deliver results that are in line with management expectations.”

Our planned milk price rise to suppliers is despite weaker bulk cream prices that would ordinarily lead to lower milk prices.

We believe an increase is required, however, to improve our relative position with regard to milk price paid and help ensure we have sufficient milk to meet our requirements in the forthcoming year.