Wiseman reports improved sales volumes with supermarket deal

Robert Wiseman, chairman of the Robert Wiseman Group, one of the UK’s largest dairies, reports that an agreement with the Cooperative supermarkets will lead to improved volumes after August this year. “Sales volumes will benefit from our increase in business with The Cooperative Group from August 2011,” he notes. “Subsequent to this, we will supply all of their own brand milk requirements. Preparations are well advanced for the creation of the Co-operative Dairy Group, which will benefit around 240 Wiseman producers.”

Meanwhile, bulk cream prices have remained strong during the period. Although the longer-term outlook remains uncertain, prices are expected to be stable during the next few months.

On the down side, diesel costs are still subject to volatility and were some 15% higher than the equivalent period last year. Similarly, the cost of resin used to produce dairy plastic bottles is 18% higher than those incurred in the same period last year. “As we have reported previously, both of these costs remain higher than the levels experienced when we sought recovery of higher costs from customers earlier in the year,” Wiseman says.

“In recent months cheese manufacturers have continued to increase the amount paid for raw milk and therefore, to ensure the security of supplies through the winter period, we anticipate that our farm gate milk price will increase in the autumn,” he notes. “We realise that the overall economic environment provides challenges for all our customers: however, we need to ensure that we secure sustainable milk supplies in line with their long-term requirements.”

Environmental measures are helping the bottom line as well, he notes. “The benefits of our recent investment in refrigeration and heat recovery equipment at our Manchester dairy has allowed for a 50% reduction in gas usage and a 200,000 litre per week saving in water use. We will continue to look for further opportunities to reduce costs either through capital investment or by improving our processes.”