UK: Wiseman next to pledge milk price hike

By Dean Best | 13 September 2012

  • Wiseman plans price increase next month
  • Follows Arla and Dairy Crest pledges
  • Processors faced summer of protests

Robert Wiseman Dairies has become the latest UK dairy processor to announce an increase in the price it pays farmers for milk.

Wiseman, owned by German yoghurt giant Muller, is to up the price it pays by 2.57p to 29p per litre on 15 October.

The increase will be paid to all dairy farmers that supply Wiseman except those aligned with Tesco, Sainsbury's and The Co-operative Group, which have their own pricing deals.

Along with other processors, Wiseman faced farmer protests this summer over plans to cut prices. The company shelved the plans and has since launched plans to work with its suppliers in order to be more transparent on how it determines the farmgate milk price. It called the hike "a substantial increase".

Wiseman milk procurement director Pete Nicholson said: "This increase is only possible with the timely support of our customers and we are working to this end and confident that this will be secured. Müller is ambitious to grow and to play a major role in UK dairy. This presents real opportunities for dairy farmers who currently supply the Group, and those who don't but may be considering whether their current buyer is right for them in the long term."

He added: "It is important to stress the simplicity and flexibility of our contract and approach. The milk price we offer is competitive but crucially it is also a ‘clean’ price which means that it is not reduced by member retentions, capital levies, balancing or haulage charges.

"Whilst this has been an extremely challenging period for the dairy supply chain we believe that a platform now exists from which the industry can begin to look forward. We are confident for the future and we look forward to working with our suppliers to realise our shared aspirations."

Show the press release

 

12 Sep 2012 15:28

FOR IMMEDIATE USE - MÜLLER/WISEMAN GROUP MILK PRICE INCREASED TO 29PPL

 

 

 

 

 

Dairy farmer suppliers to Robert Wiseman Dairies and Müller Dairy are to get a substantial increase in the milk price they receive.

 

And the Company has reaffirmed plans through its Wisemilk Initiative, to consider new ways of valuing farm-gate milk in future using the proposed Voluntary Code of Practice as a framework.

 

The move from 15th October lifts the farm-gate milk price to 29 pence per litre. The increase will be offered to all dairy farmers who supply the Company with the exception of those who are aligned with major customers like Tesco, Sainsbury and the Co-operative Group, which have their own milk pricing arrangements.

 

The Company has also outlined its desire to substantially increase the number of dairy farmers who supply it directly, in line with its own growth aspirations in the UK.

 

Pete Nicholson, Wiseman’s Milk Procurement Director said:

 

“This increase is only possible with the timely support of our customers and we are working to this end and confident that this will be secured.

 

“Müller is ambitious to grow and to play a major role in UK dairy. This presents real opportunities for dairy farmers who currently supply the Group, and those who don’t but may be considering whether their current buyer is right for them in the long term.

 

“It is important to stress the simplicity and flexibility of our contract and approach. The milk price we offer is competitive but crucially it is also a ‘clean’ price which means that it is not reduced by member retentions, capital levies, balancing or haulage charges.

 

“Whilst this has been an extremely challenging period for the dairy supply chain we believe that a platform now exists from which the industry can begin to look forward. We are confident for the future and we look forward to working with our suppliers to realise our shared aspirations.”

 

Roddy Catto Chairman of the Wiseman Milk Partnership commented:

 

“Following constructive discussions with the company we are pleased to arrive at this agreement from October 15th, which whilst not as early as we had hoped, does reflect movement by the company, who need to recover this increase from the market.

 

“The Wiseman contract has had at its heart simplicity since its launch in 1994. We welcome the increase to 29p and we recognise the hard work the Company has put in over the last few months to restore trust in the relationship.

 

“We look forward to getting on and finalising the Wisemilk Initiative with the Company and along with this clear and transparent price we firmly believe better days lie ahead for the suppliers to the Müller/Wiseman Group”.

 

Original source: Robert Wiseman Dairies

Sectors: Dairy, Private label, Retail

Companies: Robert Wiseman Dairies, Muller, Tesco, Sainsbury’s, The Co-operative Group

View next/previous articles

Currently reading -

UK: Wiseman next to pledge milk price hike

There are currently no comments on this article

Be the first to comment on this article

Related research

Tesco China: Consumer Profile

The effects of the global recession and the following recovery have led consumers to closely examine their choice of retailer and products purchased. While the effects have varied country by country, no retailer has been left totally untouched and th...

Tesco in the Czech Republic: Local Profile

This is a detailed report covering Tesco’s store formats, private labels, history, key employees, and key financial and operational metrics in the Czech Republic...

Tesco in Turkey: Local Profile

This is a detailed report covering Tesco’s store formats, private labels, history, key employees, and key financial and operational metrics in Turkey....

Related articles

Editor's choice: the highlights on just-food last week

In a week of results from major retailers, Carrefour cheered the market with improvement in France, upmarket UK grocer Waitrose highlighted its strong year and Belgium's Delhaize insisted its business in the US would improve. Elsewhere across the Atlantic, meat processor Smithfield Foods faced calls from a major investor to consider dividing in three.

Talking shop: Plassat aware more work ahead at Carrefour

Carrefour's 2012 results offer signs of encouragement for the world's second-largest retailer. However, some analysts insisted much more work is needed. That is true but Carrefour CEO Georges Plassat recognises the challenges that still lie ahead.

UK: Tesco preparing Price Promise roll-out

Tesco is preparing to transfer its Price Pledge promotion to a till-based system in the UK next week.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page