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Scottish dairy pays extra 1p for milk litre.

ROBERT Wiseman is the latest dairy to announce a rise in the milk price paid to farmers.

The Scottish company said the standard farm-gate milk price it pays will increase by 1p per litre (ppl) to 25.72 ppl from March 1. Wiseman, which runs seven UK dairies and 15 distribution depots, said it was addressing concerns about the rising cost of milk production. It comes after farmer-owned co-operative First Milk raised its prices from the start of this month in each of its three main milk pools.

The cheese pool price increased by 1.25ppl to 24.52ppl, the balancing pool by 1ppl to 24.27ppl and the liquid pool by 0.25ppl to 23.88ppl.

NFU dairy board chairman Mansel Raymond said: "This represents good news for First Milk's members and reflects the continued strength of commodities.

I don't want to take anything away from what is a positive move, but I can't ignore the fact that market indicators for cheese, butter and powder are still achieving 28-30ppl.

"Yet even with the price increase, the gap between the market price and the farm-gate price remains unsustainably wide.

"I am still extremely concerned at the continued lack of movement in the liquid market.

"Processors have been talking of a time lag, but this is a complete blockage and is further evidence that there are factors at play here which are preventing markets from operating properly.

"If ever the Government wanted more evidence of market failure in the dairy industry to back our calls for regulation on contracts, then this has to be it."

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GOING UP Another dairy is to pay farmers more for their milk, but the gap between the market price and farm-gate price is still too wide
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Title Annotation:Business
Publication:The Journal (Newcastle, England)
Date:Feb 3, 2011
Words:292
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