UK milk supplier Robert Wiseman Dairies has said it has been informed by supermarket group Asda that Wiseman's contract to supply milk to Asda is to be ended.

Wiseman said the decision was a result of a decision by Asda to source its milk from only one supplier. The contract was worth approximately £70m (US$126.2m) in turnover for the 53-week period to 3 April 2004.  

"This is obviously a major disappointment given the long term relationship we have had with Asda. We will attempt to persuade them not to follow this course of action, but we have to accept that at this stage in the process, we are unlikely to be successful," said managing director Robert Wiseman.

"Our record is one of long term, successful growth in milk volumes. We remain focused on continuing to build our presence across the UK and will strive in the period ahead to make up this lost turnover elsewhere," he added.