Wiseman bearing up in shaky milk market

A SQUEEZE on milk supplies and the falling value of bulk cream are likely to be the focus of attention when Robert Wiseman Dairies unveils year-end results tomorrow.

The East Kilbride company is expected to meet City expectations, but is thought to be feeling the heat of market pressures.

Milk supplies have fallen as farmers face up to their own rising costs, while demand is rising.

Deliveries of milk to dairies has fallen 6.1% since last April to 961m litres per year. At the same time, consumption has risen by 2.7%. It has resulted in fierce competition among buyers and sharp price increases in shops, with Wiseman increasing the price of milk by 37% since February last year.

The dairy industry is concerned about the falling value of bulk cream on commodity markets due partly to the fall in the pound against the euro. The main market for this cream is the food processing industry.

The price of bulk cream peaked last October at £1,480 a tonne but was selling in March at just £930, a 37% fall. But it is still ahead last October's price of £750.