Dairy firm's southern progress

The firm has a large share of the market in Scotland

Scottish milk giant Robert Wiseman has reported satisfaction at progress in its plans to expand in England.

The East Kilbride-based company, which has a 70% share of the Scottish milk market, has also said it will fight a decision by government competition watchdogs to restrict prices.

Chairman Alan Wiseman said that a deal with the Somerfield supermarket chain in the south-west of England would boost sales.

The company has been focusing on expanding south of the border, buying up smaller dairies to bolster its new £32m dairy at Droitwich, near Worcester.

The firm has been expanding in England

In a statement released ahead of the company's AGM on Thursday, Mr Wiseman said sales volumes were 5% up on last year.

He said: "Including the benefit of our recent Lordswood acquisition the increase is 7%.

"We are presently working on the integration of this business, with a view to harmonising systems and working practices with those in operation in the rest of the group.

"Our operations in the south west of England will benefit from additional volumes with the commencement of supplies to a number of Somerfield stores in that area from 1 October."

Mr Wiseman added that the company remained disappointed at a decision by the Office of Fair Trading last month to impose restrictions on the price Wiseman Dairies could charge for milk.

Price fixing claims

The company is to lodge grounds for appealing the decision on Friday.

The OFT said last month it was forced to take the action to stop the company inflicting what it described as "serious and irreparable damage" on its competitors, which includes Claymore and Express Dairies.

The OFT was conducting an investigation into claims by Express Dairies that Wiseman Dairies had been indulging in price fixing and anti-competitive practices.

The OFT said it had reasonable grounds to suspect an infringement of the Competition Act, however, it has not come to a final decision.