Cheer for dairy farmers as majors fight to buy milk

UK - Beef prices for producers continue to be far too low to allow a reasonable level of profit while the cereals futures markets are heading towards their highest point in well over a decade. But for dairy farmers the prospects now appear much brighter, with all the major buyers falling over themselves almost on a daily basis to offer higher prices. Milk is now in short supply.
calendar icon 4 July 2007
clock icon 2 minute read
On Monday, Arla announced a significant hike for producers, but yesterday it was Robert Wiseman Dairies that made the news with the announcement that 126 producers in Scotland will be among the first in the UK to benefit from the £25 million Tesco "sustainable dairy group initiative". This will see the ex-farm price of milk for these producers boosted to about 22p per litre.

This band of farmers has been selected on the basis of the quantity of milk it can supply to Tesco, allied to high standards of quality and animal welfare. But, as befits the largest supermarket chain in the UK, the choice of producers is also based on proximity to the Wiseman plants at Bellshill and Aberdeen.

Kari Daniels, the head of dairy operations for the supermarket, said: "Over the next few months we will be continuing to roll out this initiative throughout the UK with over 850 dairy farmers set to receive one of the best prices paid by any supermarket. "We look forward to building closer relationships with dairy farmers who supply us and to working with them in the future as we build a sustainable dairy chain together."

Partnerships have always been a key element in the Wiseman philosophy, as the firm's chief executive, Robert Wiseman, made clear. He said: "It is good news that many of our producers in Scotland will gain and we look forward to doing everything we can to support this initiative as it progresses.

Source: Scotsman
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