Milk processor to pay dairy farmers more

23 August 2011

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24 August 2011 | Angeline Albert

The head of milk procurement at Robert WisemanDairies has said its suppliers will be paid more in an effort to secure its supply of milk, which has been affected by rising commodity prices.    

Yesterday, the fresh milk processor confirmed a 1.85p per litre (ppl) increase to the farm gate price it would pay UK dairy farmers from October. The company’s decision was made as a result of greater competition for milk from cheese manufacturers who are offering to pay farmers more due to the rising value of cheese as an exportable commodity.

Pete Nicholson, Wiseman’s milk procurement director said: “If we are to meet our commitments to customers who require a long term, sustainable supply of fresh milk, it is important that we act to ensure that our farm gate milk price is competitive against a backdrop of higher prices being offered by cheese manufacturers.”

The company has now increased its milk price by more than 4ppl since May 2010.

Some 12 billion litres of milk is produced by UK dairy farmers, of which half is used for fresh milk and the other half is used in cheese, butter and other dairy products.

The company purchases, processes and distributes almost a third of all fresh milk consumed in Britain.

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