Robert Wiseman Dairies has sought to calm an increasingly restless membership by stating its intention to pay 25.5ppl from November. But its move failed to placate 19 Wiseman producers in south west Scotland who resigned over the insufficient increase. With a shortage of milk looming this winter, processors are lifting their prices in order to secure supply. Wiseman's core price will be 24ppl, with an additional 1.5ppl for seasonality. Dairy Farmers of Britain is also believed to be gearing up to announce its intention to pay 25ppl, while First Milk is offering 28ppl. The resignations from Wiseman included the first two producers it signed -Armstrong and Caygill - who quit on Monday (August 13) losing it about 60 million litres of milk. Wiseman said it was on track to recruit the farmers it needed to supply Tesco, and had a long waiting list. Tesco is due to review the price in September, and will almost certainly have to increase it above 25ppl. In a letter to Wiseman Milk Group members, Pete Nicholson, Wiseman milk procurement director said: "In this rapidly moving market we would not be surprised if the price rises further. We are proud of the fact we have repeatedly set our price in the top quartile of all milk prices paid and delivered year in year out." Kenneth Campbell, one of the farmers who have resigned, said the group was in informal talks with interested parties and was "positive" they would not have trouble selling 60 million litres from 14 November. "These progressive farmers have made huge investment," he said. "Many have already worked effectively as a group and can offer a unique compact high-volume milk field." Industry observers said price pressures would intensify and push up supply-side prices further. "The real battle for milk has yet to start with retail competing against industrial," said Jim Hawkins of the Napier Brown food group.

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