Robert Wiseman Dairies, which supplies a third of the fresh milk consumed in Britain, today announced it would increase the farm-gate price of its produce this winter. Robert Wiseman, which operates from seven dairies across the UK, said this was in response to rising diesel, plastics and other raw materials costs.

Robert Wiseman, Chair of the group, said, "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. Over the past 12 months, the business has experienced unprecedented pressure on margins and significant increases in input costs. Despite these pressures, we have continued to gain volumes and have achieved record levels of efficiency,"

The supplier signed a major deal with The Co-operative Group earlier in the year. It said the move would come into effect in the winter “to ensure the long-term supply of milk for its customers.” Higher farm-gate prices will be welcomed by many in the industry, who claim rises in revenue generated from dairy products have not trickled down to producers. The NFU’s Great Milk Robbery report, of June last year, showed increases in profits made by processors and retailers were not being passed onto farmers.

However, some have expressed fears that, if passed on to the consumer, the rises could play into the hands of British Retail Consortium; the consortium has claimed a supermarket ombudsman would result in higher food prices. However, Lib Dem MP Andrew George, head of the Grocery Market Action Group described costs to retailers of creating an ombudsperson as “a gnat bite.” British Retail Consortium research showed a surge in food prices in June.