15 June 1998
Farmers ‘to go bust’ unless milk price recovers
By FWi staff
DAIRY farmers will go bust unless milk prices quickly recover, according to Scottish milk group Robert Wiseman Dairies.
Pre-tax profits in Robert Wiseman soared 49% to £17.7 million in the year to April, the company announced today (Monday).
The profit jump came from increased turnover rather than a 20% slump in the wholesale milk price paid to farmers, company officials claimed. Sales were up 31% to 252.7m during the year to 4 April 1998.
And company chairman Alan Wiseman warned that many farmers could go under unless wholesale milk prices recovered.
“I am fearful that if milk prices come down any further the banks will start playing a hand in the situation, although I am amazed by how tremendously resilient the farmers are,” Mr Wiseman said.
The countrys biggest buyer of raw milk, Milk Marque, last week said that the fall in milk prices meant dairy farmers were receiving £900 million less than they were two years ago.