Dairy Crest is announcing the Davidstow milk price will reduce by 1 ppl from 1 June 2016. This reduction has been agreed with DCD and applies to all farmers supplying Davidstow.
This means the Davidstow core milk price will be 21.72ppl* from 1 June 2016.
Ruth Askew, Dairy Crest’s Head of Procurement, said:
“Dairy Crest is committed to paying a fair milk price. In addition, we aim to provide certainty and stability for our farmers. For example, the recent milk price floor which we put in place during peak production through to the end of May.
The performance of our cheese brands, underpinned by a world class supply chain, enables us to pay a premium for the high quality milk our farmers supply us. However, the dairy sector remains under extreme pressure. As a result, we must act responsibly to ensure that our cheese business remains competitive. Unfortunately this means that we must now adjust the milk price. Our Davidstow price is still one of the most competitive manufacturing contracts in the UK, particularly given the significant volumes of milk we purchase.”
Mrs Askew continued:
“In this challenging environment, Dairy Crest continues its focus on adding value to milk and growing our brands. It is our intention to create demand for British dairy products in the UK and abroad. Production of demineralised whey and GOS is underway. We have recently announced the relaunch of our Cathedral City brand, with new packaging now in the shops. We are further supporting the brand relaunch with new TV advertising and other promotional activities.”
* Manufacturing standard litre milk prices as published in milkprices.com