25 January 2015 | Online since 2003



4 March 2014|Dairy,Finance,News

Price increase for farmers on Dairy Crest formula contract


Dairy Crest and Dairy Crest Direct (DCD) have jointly announced the launch of two new contract options for the start of the milk year. Delivering on Dairy Crest’s commitment to offer farmers flexibility and choice, both contracts will allow farmers to choose the contract best suited to their individual farm business model.

In 2013, Dairy Crest was the first processor to launch a formula price for farmers on standard contracts and from April it will offer farmers a re-based and enhanced financial offer, based on market conditions. The ‘Core Formula Contract’ will deliver a milk price for April of 32.75 ppl on a standard basis*, which represents a 2.5 ppl increase against the current formula prediction.

Dairy Crest continues to take the lead in contract options and is the first processor to offer farmers a new ‘Simplified Formula Liquid Contract’. The ground-breaking contract has been developed in response to farmers asking for straightforward, simple contract terms. The key focus for this contract will be volume. The start price for April is 32.56 ppl on a standard litre basis.*

Available to farmers supplying milk on liquid contracts, both options use the innovative DC/DCD formula mechanism developed by Stephen Bradley last year.

Dairy Crest’s Group Procurement Director, Mike Sheldon stated: “This is a really positive step from Dairy Crest and DCD and shows our commitment to deliver a fair, competitive milk price as well as a wide choice of contract models to our farmers.

“Our Core Formula Contract has been successful in delivering complete price transparency and building trust in the pricing process, and we want to extend it and expand the number of farmers signed up. We were really proud to be the first to deliver this model last year which has reflected the movements in both dairy market and farm cost indices. However, the market environment for milk supply is different to last year and we have agreed with DCD that we will re-base it from April to ensure we remain competitive.

“We have committed to continually develop a relevant portfolio of contracts to meet the needs of our different supplying farm businesses. Having listened to our farmers, I am confident that the new Simplified Formula option will be a real benefit to some of our farmers and deliver a very competitive offer in the marketplace.”

DCD Chairman David Herdman welcomed the new contracts, “We’re pleased to have worked closely with Dairy Crest to re-base the formula and to develop the new liquid contract options for our members. We remain committed to our joint Formula initiative, which provides a transparent pricing mechanism. I am delighted that we have also been able to deliver against requests for a more straightforward milk supply contract and extend contract choice”

The application process for both new contracts will open later this month after regional meetings across the Dairy Crest milk field.

Download



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


19 January 2015
Commercial Property Solicitor
The Commercial Property Solicitor will deal with a varied caseload of real estate along with agriculture matters including th...

21 January 2015
Category Manager - Agriculture
The role of the Category Manager for Agriculture is to manage the procurement of Wheat, Flour, Cereals and Seeds & Spice,...

9 January 2015
Project Development Assistant / Coordinator
To identify land and associated landowners suitable for solar farm developments through in-house site selection process....

13 January 2015
Commercial Management Trainee
Either a recent graduate or due to graduate in 2015 with a minimum 2:1 degree (or equivalent) in a relevant subject, such as ...

10 January 2015
Dairy Technical Support Engineers (UK)
Build relationships with dealers and customers through on farm. Assisting the UK dealer network in all aspects of training an...




Top stories you may have missed
12 November 2014 | Arable
GM crops 'good for farmers and the envir...

GM crops 'good for farmers and the envir...

GM crops are good for the economy and can reduce the amount of pesticides u...


6 November 2014 | Cattle
Smaller European markets drive beef expo...

Smaller European markets drive beef expo...

Demand from smaller European markets has helped drive strong growth for UK ...


6 November 2014 | Agri Safety
Lack of engineers a 'ticking time bomb' ...

Lack of engineers a 'ticking time bomb' ...

A lack of engineers, not enough people promoting the land-based industries ...


4 November 2014 | Bees and Beekeeping
Bee action plan due: Last chance for bee...

Bee action plan due: Last chance for bee...

Environment Secretary Elizabeth Truss is launching the National Pollinator ...


4 November 2014 | Arable
Experts welcome financial boost for youn...

Experts welcome financial boost for youn...

Agricultural specialists have welcomed a potential financial boost for youn...


3 November 2014 | News
Supermarket competition on prices 'risks...

Supermarket competition on prices 'risks...

As retailers continue to participate in a highly competitive race to the bo...


31 October 2014 | Arable
New Defra farm figures 'underline volati...

New Defra farm figures 'underline volati...

New farm business income data from Defra, which focus on income from March ...


30 October 2014 | Agri Safety
Agriculture remains one of UK's most dan...

Agriculture remains one of UK's most dan...

Agriculture has remained one of the industries in which workers are most li...


29 October 2014 | Finance
UK farmland prices see 'substantial grow...

UK farmland prices see 'substantial grow...

Prime arable land in the UK has seen a substantial year-on-year growth in p...


27 October 2014 | Arable
Satellites to help farmers pinpoint dise...

Satellites to help farmers pinpoint dise...

A new mobile app for farmers able to pinpoint and identify disease, pests a...