East Kilbride-based Wiseman Dairies is pushing up its prices to cover rising costs for itself and farmers, it said yesterday.

East Kilbride-based Wiseman Dairies is pushing up its prices to cover rising costs for itself and farmers, it said yesterday.

In a trading update to the stock exchange, the company said it was on track to meet analysts' expectations for the 12 months to March 29.

House broker Investec estimates that the company will record a pre-tax profit of £37.5m for the period compared to £33.8m last year.

This was enough to cheer investors, who sent shares in the firm up 23.75p to 451.5p.

Wiseman is reporting massive increases in costs hitting the sector. While its suppliers are having to cover higher feed costs for their animals, Wiseman said it is absorbing soaring diesel costs for its transport, up some 20% on summer 2007, and rising prices for the material for its plastic bottles, up 11% since the summer.

The company said it has begun implementing higher selling prices to its customers, which range from supermarkets for their own-brand ranges, to corner stores.

It hopes to have this concluded by the beginning of April and said that at that point it can increase the price paid to suppliers. This, the company said, would be in the face of weaker bulk cream prices that would normally drag down the price of milk itself.

Group finance director Bill Keane said: "We believe an increase is required, however, to improve our relative position with regard to milk price paid and help ensure we have sufficient milk to meet our requirements in the coming year."

The firm also announced there was a delay in commissioning a final filling line for its new £80m Bridgwater dairy in Somerset. This will cost the company an extra £1m in the first quarter of its new financial year as it has to seek the milk from elsewhere.