News

Robert Wiseman Dairies expects it will have to increase the price of milk if the costs of plastic packaging and oil continue to rise.

The firm expects financial results for the current year to be "in line with expectations", but warned yesterday (30 January) that there was still inflationary pressure on costs, and that plastic and oil were "the main concerns".

The Platts Resin index has increased by 8% this month, and the price of diesel by 12% since last summer.

Price increases in autumn 2007 enabled the company to recover higher costs, but further increases could be necessary to "maintain operating margins".

Robert Wiseman is also poised to move its distribution operations to its new site near Bridgwater, Somerset, which it said would "lead to improved efficiencies and cost savings".

The firm's share price rose steadily between late October 2007 and early January, when it lost a fifth of its value in 15 days.

It has recovered since 23 January and today rose by 1.5% to £5.33.