UPDATE: UK: Wiseman shelves milk price cut
Wiseman announced a U-turn by shelving plans to cut its milk prices
Robert Wiseman Dairies has confirmed it will shelve plans to cut the price it pays for milk following talks with farmers and its retail customers.
Wiseman was set to lower the price it pays suppliers by 1.7p per litre but this afternoon (27 July) announced a U-turn.
The company said: "Robert Wiseman Dairies confirms today that it will hold its milk price for Wiseman Milk Group members for August."
Wiseman had faced protests from farmers angry at its plans. Over the last two weeks, farmers had held protests at processors' sites across the UK after the country's largest dairy companies had announced plans for price cuts.
In the last 24 hours, rival processors Dairy Crest, Arla Foods and First Milk has said they would either postpone or withdraw their plans to reduce prices. The protests then centred on Wiseman and last night it was forced to close a number of depots.
Wiseman said its decision takes into account the recent concerns voiced by dairy farmers.
"The announcement of the reduction though coincided with a period of adverse weather conditions and rising feed costs for dairy farmers which we recognise has caused difficulties for farmers. We have been engaging with our customers with regards to the exceptional circumstances facing the supply chain and the need for urgent and significant support. From our discussions to date, we are confident this support will now be demonstrated," Wiseman said.
However, throughout what has been a tense two weeks in the sector, dairy companies have pointed to the challenges they face, include a slump in the price for bulk cream, which had prompted the plans for cuts.
Wiseman, which is owned by German yoghurt giant Muller, said there had been "recognition" of the problems facing processors.
"We welcome whole industry recognition of the difficulties facing farmers and the acknowledgement that fresh milk processors, even those that are as efficient and well invested as Wiseman, are under severe financial pressure," Wiseman added.
The dairy processor said it remains confidence it can work with farmers and its customers to address these issues.
Last week, a number of the challenges facing food manufacturers and retailers were once again thrown into sharp relief. The industry continued to grapple with the cyclical difficulties of a down globa...
Growing competition for space in key emerging markets appears to have convinced Arla Foods that it needs to act now if it is to secure a market for its milk supplies beyond 2015....
Unternehmensgruppe Theo Müller has confirmed plans to invest GBP17m (US$27.3m) in a new UK facility that will see the company move into butter manufacturing in the country....
Arla Foods has said it aims to double ingredients sales in the next five years as part of a new business strategy designed to increase the dairy co-operative's presence in emerging markets....
- Mondelez results and outlook - 7 things to learn
- Comment: Hain Celestial cognisant of US challenges
- What should you learn from 2015 olive oil prices?
- Why Lactalis swooped for Romanian dairy Albalact
- just-food's three top tips for M&A deals in 2016
- Mondelez continues to see margins up, sales mixed
- Hain Celestial lifted by international, protein
- China eyes further infant formula restrictions
- Unilever launches eggless Hellmann's mayo in US
- Coca-Cola to invest in Nigerian dairy group Chi