Dairy firm bemoans high input costs

28 March 2008
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28 March 2008 | Jake Kanter

Robert Wiseman Dairies has blamed "exceptional" cost increases within its supply chain for the rise in the price of its milk.

In a trading update, group finance director Billy Keane said input costs were 30 per cent higher than this time last year.

He said its milk suppliers had experienced increased prices for feed, while the dairy company was simultaneously combating the high cost of oil in logistics. The price of packaging also increased. It is up 11 per cent compared with mid-2007, with the cost of resin having risen to £990 per tonne.

"We have begun implementing higher selling prices to cover these cost increases, which will also allow an increase in the price paid to our milk suppliers," said Keane.

The company added that the full opening of its new dairy in Bridgwater, Somerset, had been delayed because sub-contractors were behind schedule. Full production will not start until May and it estimates the delay will cost £1 million.


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