Wiseman Dairy, Bridgwater, Somerset, United Kingdom

The UK's Robert Wiseman Dairies opened a 325,000m² dairy in Bridgwater, Somerset, for the production of both organic and conventionally produced milk on 4 September 2008. The plant was opened by the Defra Minister Lord Rooker.

The company suffered setbacks in 2005 due to the loss of two major contracts but has now bounced back with a new £80m dairy in the south-west of England, which will consolidate the Wiseman operation in the area and allow an overall increase in efficiency. The dairy is located in one of the largest milk producing areas in the UK, which keeps transportation costs to a minimum.

The company took over the local Milk Link liquid milk business in early 2006 as a prelude to its intended expansion. The dairy will have a throughput of eight million litres of milk per week and will eventually employ over 400 people.

BRIDGWATER REGIONAL RURAL BUSINESS CENTRE

The dairy and distribution centre is situated in the Regional Rural Business Centre in Bridgwater (RRBC). This new hub is intended to be the premier south-western agricultural business centre and will contain a range of integrated businesses. In addition to the new Wiseman dairy the centre will also contain a new livestock market. The design consultants for the RRBC were Hammonds Yates Ltd.

CONSTRUCTION

The diary is capable of processing 500 million litres of milk per year. It will be able to distribute to Wales, the south-west of England and the Midlands.

The costs for the new dairy increased due to an increase in the design capacity from 300 million litres to 500 million litres. This saw costs leap from £46m up to £80m. The plant was constructed by A and H Construction and quantity surveying was handled by Dickson Associates.

PACKAGING EQUIPMENT

The diary is integrated with full packaging facilities including a plastic carton blow moulding plant situated on the site.

Isoma will supply half-sized trolley packers and a complete conveyer system for the Bridgwater site. Wiseman group technical manager Neil Hughes said: "The firm has already tested the trolley packer at other sites, and after real-time modelling of our proposed filling lines, the simulation proved beyond doubt the benefits of the new trolley packer."

WISEMAN RECOVERY

Robert Wiseman Dairies suffered a major setback in 2005 following the loss of major contracts with supermarket chains Morrison and ASDA. Profits fell by 15% to around £25m after a year of contract battling with rival milk producers ARLA and Dairy Crest.

The company was able to weather the storm and in 2006 higher selling prices and value-added milk helped it rebuild operating profit margins.

Operating profits rose by around 30% and turnover rose 6.5% to £568m. This was helped by new milk supply contracts with Tesco, Iceland and Sainsbury's. The company supplies over 60% of Tesco’s organic milk and has concentrated on new value-added milk products such as ‘The One’ milk (a 1% fat product) to rebuild profit margins.

The company has also launched flavoured organic milks, flavoured milk and a fortified milk with omega 3 and vitamins A, C and D. From November 2006 Wiseman also picked up a contract to pack milk for Rachel’s Organic (Horizon Dairy).

The company picked up extra contracts in 2007 including the One Stop convenience store chain and the Co-op group, which recently bought rival Somerfield, representing a further 100 million litres per year for Wiseman. In conjunction with deals to supply Co-op stores in Scotland and the south-west of England, Wiseman's contract with the supermarket chain is in the region of 220 million litres per year (13% of Wisemans total annual output).

ORGANIC MILK

The dairy will produce and package a good deal of the organic milk in the UK. With the enhanced health benefits of the consumption of organic milk confirmed by nutrition experts the demand by consumers has increased exponentially.