DairyCo

Wisemans anticipates further milk price rise in Autumn

Published 7 July 11

Yesterday (6 July) at the 2011 AGM of Robert Wiseman Dairies PLC (RWD), an interim management statement read by Chairman Robert Wiseman told shareholders that the company anticipates that its farmgate price will increase in the autumn.

The statement identified recent events, including the start in August of RWD's contract to supply the Co-operative Group with all of its own-brand milk requirement and also the recent strength of bulk cream prices.

As a result of strong wholesale markets and the increases in prices paid for raw milk by cheese manufacturers; RWD anticipates further increases to its farmgate price in the autumn to ensure security of supplies through the winter.

While RWD was keen to point out that it appreciates that current economic conditions provide challenging times for all its customers, its costs; particularly with regards to diesel and plastics (packaging) have increased year-on-year by 15% and 18% respectively, more than the levels experienced when it looked to recover costs earlier in the year. 

More information on the farmgate price currently paid by the company and other dairies can be found in the DairyCo League Table.