Wiseman Dairy, Bridgwater, United Kingdom

The UK's Robert Wiseman Dairies is due to open a new dairy in Bridgwater, Somerset, for the production of both organic and conventionally produced milk.

The company suffered recent set backs due to the loss of two major contracts during 2005 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 company took over the local Milk Link liquid milk business in early 2006. The dairy will have a throughput of eight million litres of milk per week and will employ over 400 people.

BRIDGWATER REGIONAL RURAL BUSINESS CENTRE

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

CONSTRUCTION

The new Wiseman facility in Bridgwater will be capable of processing 500 million litres of milk per year. It will be able to distribute to Wales, the south-west of England and even the Midlands.

The new plant is being constructed by A and H Construction and is scheduled to be complete and in operation by December 2007. The costs for the new dairy have increased due to an increase in the design capacity from 300 million litres to 500 million litres. This has seen costs leap from £46m up to £80m. Dickson Associates have carried out quantity surveying services for the construction.

PACKAGING EQUIPMENT

The plant will be totally integrated with full packaging facilities including a plastic carton blow moulding plant situated adjacent to the Bridgwater plant.

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… In addition Isoma’s innovative approach has led us to investigate the option for the new Bridgwater dairy and, after real-time modelling of our proposed filling lines, the simulation proved beyond doubt the benefits of the new trolley packer… Isoma will also supply conveyors for Alpla’s blow-moulding plant, which is next door to Wiseman Bridgwater."

The Alpla plant will manufacture HDPE containers and convey them directly to the dairy. Wiseman recently awarded Isoma with supplier of the year status. The Wiseman Group also has facilities in East Kilbride, Aberdeen and Glasgow as well as Manchester and Droitwich Spa.

WISEMAN RECOVERY

Robert Wiseman Dairies suffered a major set back 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 added value milk helped it to 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, Somerfield and Sainsburys. 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.

In recent times the company has also launched Tesco 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 firm has already picked up extra contracts in 2007 including the One Stop convenience store chain and an upcoming extension to its deal with the Co-Op.

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.

For the dairy processor, organic milk offers opportunities for higher margins due to its current higher selling price in the supermarket. Wiseman aims to make its new dairy at Bridgwater, Somerset an organic milk hub when it opens in December 2007.