Price increase for Wiseman suppliers

Farmers supplying Robert Wiseman Dairies are to get an extra 1.85p/litre for their milk from October.

The firm said the increase, which takes Wiseman’s standard litre price to 28.42p/litre, was in response to continued strength in dairy commodity markets, plus a need to secure milk supplies going into the winter.

“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 our farm gate milk price is competitive against a backdrop of higher prices being offered by cheese manufacturers,” Pete Nicholson, Wiseman’s milk procurement director said.

“While the economic and consumer environment remains challenging, we understand and acknowledge the importance of securing this increase on the back of commodity markets remaining strong and to cover ongoing farm cost increases,” he said in a letter to members.

The firm has 1022 members, supplying 65-70% of its milk requirement. The remainder is bought from Milk Link and First Milk, both of which will be paid the higher price for any milk bought by Wiseman.

RWD has also made adjustments to the compositional quality, bactoscan and somatic cell count elements of its milk pricing schedule, which also come into effect from 1 October.

These changes are designed to bring milk supplies more closely into line with the requirements of the business and its customers. The changes will apply to all Wiseman Milk Group members, other than for milk sold under the Tesco or M&S agreements.

The changes are:
• A cap on protein payments at 3.0%
• Raising of the butterfat level at which the base price is paid from 3.5% to 3.85%
• Introduction of super premium bands for both bactoscan and somatic cell count, at the premium rate of 1.25p/litre, for bactoscan of 30,000 and below, and SCC of 200,000 and below
• Removal of bactoscan bonus between 75,000 and 50,000
• Replacement of standard bactoscan (75,001 to 100,000) and cell count (250,001 to 300,000) bandings with a penalty of -0.5p/litre
• Further accentuation of penalties for SCC above 250,000