Wiseman,, one of Britain's top three dairy processors alongside Dairy Crest and Arla UK, said sales and volumes for the full year up to 31 March should meet market expectations.

It is the second broadly positive announcement to have emerged from the UK dairy sector this week, at a time when the industry continues to face heavy cost pressures.

Wiseman's growing range of added value liquid milks, including a new push to meet demand for organic milk, drove growth.

Over the last six months the firm has launched Tesco Flavoured Organic milk, Kids Flavoured milk and a fortified milk product with Omega 3 and vitamins A, C and D.

Sales of low-fat milk, 'the One', benefited from a £2m million national advertising campaign, the group said. Its private label, extended shelf life milk, Tesco Pure, together with sister brand, Puriti, also made steady progress, the group added.

New organic milk supply deals with Tesco and Rachel's Organic, meanwhile, helped to improve Wiseman's position in the UK's blossoming organic milk market.

The firm has already said its new dairy, currently under construction near Bridgewater in the south west, would provide a state-of-the-art facility for organic milk processing.

Wiseman said margins had continued to recover during the second half of the year, echoing similar confidence from Dairy Crest.

Analysts cited the recent boom in world prices for dairy commodities as a significant factor for Wiseman. Prices shot to record levels early in the year.

This, plus recent rises in retail milk prices, have increased anticipation among dairy farmers for higher farmgate milk prices.

Source: foodproductiondaily.com