Dairy Crest is announcing, in agreement with Dairy Crest Direct (DCD), that the Davidstow milk price will reduce by 1 ppl from 1 July 2016.
This applies to all farmers supplying Davidstow. This means the Davidstow core milk price will be 20.72ppl from that date.
At the same time, Dairy Crest is introducing a milk price floor, meaning there will be no further reductions in the milk price until at least the end of September 2016.
Ruth Askew, Head of Procurement at Dairy Crest, said: "Dairy Crest is introducing this milk price floor now to give our farmers some much-needed stability until at least the end of September.
"We are doing this because we recognise the challenging environment dairy farmers are facing. I also want to make it very clear that this is a price floor - not a ceiling.
"Dairy Crest always aims to pay a fair, stable, market-related milk price. I know this reduction will be disappointing for our farmers.
"However, the on-going deflationary pressures in dairy markets remain significant. We must therefore act responsibly to ensure that our cheese business remains competitive.
"I am pleased that Dairy Crest continues to offer a contract which is amongst the most competitive in the country.
"I have every confidence in the future of British dairying. We have some of the best farmers supplying Davidstow as well as the best conditions for producing milk.
DCD Chairman Steve Bone commented: "It is our hope that this three month floor will go some way to help to slow what seems to be an on-going culture of monthly milk price reductions across the majority of milk buyers and promote some stability."
