A MAJOR farming co-operative is interested in buying a 15 per cent stake in Robert Wiseman Dairies, which employs around 800 people at its flagship Droitwich depot.

Wiseman is committed to investing £7m in the production of extended life milk at Stonebridge Cross Business Park, Hampton Lovett, Droitwich, during the second quarter of next year.

It is the company's newest and biggest dairy, supplying milk to retailers and caterers throughout the Midlands and southern England.

The company also plans to invest £7.5m in a new distribution depot at Northampton, which will take milk from the Droitwich dairy.

First Milk, a co-operative of 4,000 dairy farmers, has been one of Wiseman's suppliers for 10 years and provides 40 per cent of its milk, around 500 million litres per year.

The remaining 60 per cent comes from contracts held directly with farmers.

Wiseman's board has confirmed that it is in the preliminary stage of negotiations with the co-operative, which wants 15 per cent of the company's ordinary share capital.

This would probably be acquired by offering Wiseman shareholders £2.50 per share, representing a 10 per cent premium on the closing share price on Friday, October 1.

Reform of the Common Agricultural Policy could put pressure on future supplies and that is seen as one good reason for Wiseman to enter into a partnership with First Milk.

Cross-investment with the company's chief supplier could also provide a platform for future growth of the company, with benefits for the Droitwich workforce.

"We believe this deal would strengthen the relationship that exists between the two organisations," said chairman Alan Wiseman, whose brother, Robert, is managing director.

He said there would be no change in the management of the company, or the roles of himself and his brother.

The company said a further announcement would be made as appropriate.

n Midlands dairy farmers are being offered free transport to the Milk Development Council's first national Dynamic Dairying conference.

Key themes of the conference at Ardingly, West Sussex, on Tuesday and Wednesday, October 26 and 27 will be business management and labour motivation.

For details and information about free buses, call 01285 646500 or visit www.mdc.org.uk