Robert Wiseman Dairies is to increase milk prices to suppliers because of “exceptional” cost increases in animal feed, packaging and oil.

It has started to charge higher selling prices to cover the increases, Robert Wiseman said in a trading update.

“We believe an increase is required to improve our relative position with regard to milk price paid and help ensure we have sufficient milk to meet our requirements in the forthcoming year,” the company said.

It is also planning to stop production at its Pensilva dairy in Cornwall in May.