New plant could mean better milk prices

By FWi staff

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 suppliers should reflect the greater efficiency of modern processing plants.

The 35 million Droitwich facility, which has a capacity of 500m litres a year, is the largest fresh liquid milk and cream plant in the world.

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, partly blaming Wiseman for adding more over-capacity.

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.