UK – Dairy farmer suppliers to Robert Wiseman Dairies and Mí¼ller Dairy are to get an increase in the milk price they receive. And the company has reaffirmed plans through its Wisemilk Initiative, to consider new ways of valuing farm-gate milk in future using the proposed Voluntary Code of Practice as a framework.The move from 15th October lifts the farm-gate milk price to 29 pence per litre. The increase will be offered to all dairy farmers who supply the Company with the exception of those who are aligned with major customers like Tesco, Sainsbury and the Co-operative Group, which have their own milk pricing arrangements.
The Company has also outlined its desire to substantially increase the number of dairy farmers who supply it directly, in line with its own growth aspirations in the UK.
Pete Nicholson, Wisemanâ€™s Milk Procurement Director said: â€œThis increase is only possible with the timely support of our customers and we are working to this end and confident that this will be secured.
â€œMí¼ller is ambitious to grow and to play a major role in UK dairy. This presents real opportunities for dairy farmers who currently supply the Group, and those who donâ€™t but may be considering whether their current buyer is right for them in the long term.
â€œIt is important to stress the simplicity and flexibility of our contract and approach. The milk price we offer is competitive but crucially it is also a â€˜cleanâ€™ price which means that it is not reduced by member retentions, capital levies, balancing or haulage charges.
â€œWhilst this has been an extremely challenging period for the dairy supply chain we believe that a platform now exists from which the industry can begin to look forward. We are confident for the future and we look forward to working with our suppliers to realise our shared aspirations.â€
Roddy Catto Chairman of the Wiseman Milk Partnership commented: â€œFollowing constructive discussions with the company we are pleased to arrive at this agreement from October 15th, which whilst not as early as we had hoped, does reflect movement by the company, who need to recover this increase from the market.
â€œThe Wiseman contract has had at its heart simplicity since its launch in 1994. We welcome the increase to 29p and we recognise the hard work the Company has put in over the last few months to restore trust in the relationship.
â€œWe look forward to getting on and finalising the Wisemilk Initiative with the Company and along with this clear and transparent price we firmly believe better days lie ahead for the suppliers to the Mí¼ller/Wiseman Groupâ€.
Source: The Dairy Site