Dairy Crest is announcing today that the milk price it pays to its Davidstow farmers will be reduced by 1ppl from 1st June to 29ppl and by a further 1ppl from 1st July. We will then hold the price at 28ppl* until 30th September 2017. These changes have been agreed with Dairy Crest Direct (DCD).
Chris Thomson, Group Procurement Director at Dairy Crest, said:
“To remain competitive a price reduction has regrettably become necessary. We know that our farmers need stability and certainty for the future. That is why we have spread the reduction over two months and agreed the price level for the next four months.
This latest announcement builds on our actions at the end of last year when we responded quickly to the changing market environment through a series of significant price increases, followed by a hold for the last three months.”
DCD Chairman Steve Bone commented:
“It has been difficult to agree a milk price reduction. Whilst negotiating we believed that it was very important to put in place a period of stability which protects us as producers through a period where milk volumes are increasing, which is having an impact on dairy markets.”
* Manufacturing standard litre milk prices as published in milkprices.com
For further information please contact:
Group Procurement Director
Notes to Editors
About Dairy Crest
Dairy Crest is the leading British-owned dairy company. Our main consumer brands are Cathedral City, Country Life, Clover and Frylight. We work with some 370 farmers in the South West.
Dairy Crest has invested significantly at its Davidstow creamery and is now manufacturing demineralised whey powder and galacto-oligosaccharide (GOS), a lactose-based prebiotic, both widely used in infant formula.
About Dairy Crest paying a competitive milk price
1. Davidstow milk price maintains leading position: 1 December 2016 – end of December 2016
Dairy Crest announces a further 1.78ppl milk price increase from 1 December 2016, marking the fourth consecutive monthly increase in farmgate price since September 2016.
2. Milk price increases: 1 January 2017 - 1 February 2017
Dairy Crest announces 2ppl milk price increase in January 2017 followed by a further increase of 2ppl in February 2017.
3. Milk price held for March 2017, April 2017 and May 2017