30 June 2015 | Online since 2003

Dairy Crest cut price paid to farmers



2 June 2014 09:55:35|Cattle,Dairy,Finance,News

Dairy Crest cut price paid to farmers


Dairy Crest has announced a price cut of 1.25 ppl for farmers on standard liquid contracts from 1 July. The new price will be 31.2 ppl after the cut.

The company said the liquid price move reflects market conditions, with high levels of production and reduced dairy market returns.

Mike Sheldon, Dairy Crest Group Procurement Director, said; “The reduction in the price for our standard Liquid contracts reflects the lower returns from our markets following a period of record milk production. I recognise a price decrease is disappointing for our farmers but we have delivered on our commitment to strive for stable pricing by adjusting the price by less and later than our competitors.

“I’m confident that we have a compelling package for our farmers, offering flexibility and choice and a comprehensive farm support service. From July we will be offering a further volume of milk priced according to our innovative Formula contract options. Also, all farmers supplying Dairy Crest continue to benefit from their milk not being subject to capital deductions or other hidden costs.

"I am pleased to deliver further stability on our cheese price for Davidstow farmers. As our successful Cathedral City and Davidstow cheese brands continue to grow, we need more milk for our Davidstow Creamery.

“I believe the British dairy sector has a bright future. Investment projects such as our £45 million demineralised whey plant at Davidstow will open up new global markets for us and our farmers.”

David Herdman, Chairman of Dairy Crest Direct said, "The pressure on all milk pricing from falling market returns is clear."

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