Investment in plant may lift prices, says supplier
Investment in plant may lift prices, says supplier
INVESTMENT in the latest dairy plants could lead to better prices for milk producers, according to one supplier.
Speaking during a media tour of Robert Wiseman Dairies giant new liquid milk creamery at Droitwich Spa, near Birmingham, procurement director Pete Nicholson argued that prices paid to farmers supplying milk directly, or through co-ops, should reflect the greater efficiency of modern processing plants.
"We have to remain competitive, but we are determined to use some of the gains from maximising technological efficiency to go on paying good producer prices. This plant has been built in consultation with our customers to ensure we meet all their specifications. We feel it is important that farmers can sell to state-of-the-art plants."
The £35m Droitwich facility, which has a capacity of 500m litres a year, is the largest fresh liquid milk and cream plant in the world and includes a milk container manufacturing line occupied by Alpla, the Austrian packaging group.
It is the first food factory in Europe to get an EU Integrated Pollution Prevention and Control licence. Other dairies will not be allowed to operate after 2004 unless they obtain the same permit.
The firms 2001 annual report shows an operating profit of £20.3m, a rise of 7.7% on 2000.
Meanwhile, rival dairy company Express has warned that its interim profits will not be more than £11m. Express partly blamed Wiseman for adding more over-capacity by developing its new super dairy in Droitwich.
Express said it was gaining market share in the highly crowded shop and supermarket sector, but at lower margins. Further cost cutting would take place to add to the £9m savings the company has made so far this year.
Members of Express Milk Partnership, the milk supplier for Express, can now buy shares in the company, either monthly through their milk cheques or on an ad hoc, lump sum basis through independent broker The Share Centre.
Voting rights would be vested in EMPs "producer directors", who can vote on behalf of members. This would ensure their voice was heard, said Richard Smith, chairman of EMP.
lExpress and Golden Vale have agreed to dispense with their Northern Ireland liquid milk business Dale Farm to Dromona, a big farmer co-op in the Province. Express will receive its full 80% share of the holding, worth £14.6m. *
Wisemans production manager Martyn Mulcahy shows off the sites bottling facilities at Droitwich.