Wiseman Confirms Farmgate Milk Price Reduction
UK - Robert Wiseman Dairies has confirmed its first farmgate milk price reduction for more than three years.
1 May 2012
1 minute read
The move reflects the continuing and sustained impact of a challenging market environment and more recently a collapse in the value of bulk cream.
Higher returns from cream prior to the turn of the year partially compensated for other pressures facing the business, but the collapse in bulk cream value since the beginning of 2012 has resulted in an untenable position.
As a consequence and following full and frank discussion with the Wiseman Milk Partnership Board, Wiseman is reducing its milk price by 2ppl to 26.42 pence for a standard litre from June 1, 2012.
Pete Nicholson, Wiseman Milk Procurement Director said: “After a three year period which has seen our farm-gate price increase five times by a cumulative 4.55 ppl, we must now reflect the competitive environment we are operating in and substantially lower returns from the bulk cream market.
“The slide in the value of cream has accelerated since the turn of the year and the lack of relief from other market related pressures mean that we can no longer sustain the Wiseman milk price at the level it was at.
“It is essential that we continue to strike a balance between paying a competitive milk price to farmers who are not aligned with major retailers, and the ability to compete within our sector of the dairy industry.”
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