Dairy Crest has announced a further 1 ppl increase for the farmers on its Standard Liquid, Organic and Davidstow contracts. These latest changes have been agreed with DCD and will apply from 1 November 2013.

Dairy Crest’s milk price formula, which sets milk prices with reference to changes in global cream prices and on-farm costs, has increased by 1 ppl over the last few months. These latest increases reflect those market movements.

Mike Sheldon, Group Procurement Director, said:

"The increases we are announcing today show Dairy Crest’s commitment to pay fair, market related milk prices to our farmers. We expect to recover the increased raw milk costs from our customers and are continuing to work with them to adopt our innovative formula as a means of setting our prices with them. We see this as a key step in building trust in the pricing process."

The new prices will be 33.25 ppl for Davidstow and 32.50 ppl for liquid, on a standard litre basis.