Dairy farmer suppliers to Robert Wiseman Dairies and Müller Dairy are to get an increase in the milk price they receive.
The Company has also reaffirmed plans to consider new ways of valuing farm-gate milk 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.
“This 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" said Pete Nicholson, Wiseman's Milk Procurement Director.
“Müller 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 don’t but may be considering whether their current buyer is right for them in the long term."
“It 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 ‘clean’ price which means that it is not reduced by member retentions, capital levies, balancing or haulage charges.
“Whilst 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.”
Another dairy, Grahams', Scotland’s largest independent dairy producer announced it is to increase the price of milk it pays to its farmers from 26.75 pence per litre to 29pence per litre.
The new price will be one of the highest paid to Scottish producers.
Dr Graham, chairman of Graham’s The Family Dairy, commented: “As farmers ourselves, we know these are challenging times with farmers faced with poor harvests and ever increasing costs. We have longstanding and strong relationship with our milk producers. Consequently, we want to help by raising the price we pay these hard-working farmers for their milk”
Roddy Catto, Chairman of the Wiseman Milk Partnership said: “Following 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"