ROBERT Wiseman Dairies this week announced a 2p a litre rise for all their milk suppliers.

The increase will be implemented from October 1 and the company urged others to do the same.

The decision follows a sustained period of improvement in the value of butterfat across all markets which, the company believes, justifies the increase.

"We hope that this example will be followed by others, to the ultimate benefit of the British dairy industry," said Mr Robert Wiseman, managing director.

The announcement was made in advance of the publication of an NFU report on the dairy sector which called for producer prices to be increased by at least 2ppl immediately.

British Milk - What Price? was launched on Wednesday and quoted MAFF figures showing prices paid to producers had fallen to as low as 14.62ppl.

An in-depth study, it said processors and retailers had to recognise the need for a price rise during the next two weeks of price negotiations.

The report said the price collapse was caused by an over-supply in world dairy commodity markets; the strength of the pound against the euro and the weak marketing position of the milk industry compared with processors and retailers.

However, over the summer there were signs of an improvement in dairy markets, particularly for skimmed milk powder and butter. This, coupled with cost cutting in the processing sector and a fall in the strength of sterling, made the future look brighter.

"Retailers and processors have laid the blame for the poor fortunes of the dairy sector firmly at the door of the marketplace," said Mr Tim Bennett, NFU deputy president. "It is now time for the industry to deliver a fair share of these improved returns to producers."

l Robert Wiseman dairies is also entering into UK-wide trade union recognition with the Union of Shop, Distributive and Allied Workers