Dairy Crest has announced that it is increasing the milk price it pays to its farmers by 1 pence per litre to 29ppl from 1st September 2017.
The dairy giant had previously been agreed with Dairy Crest Direct (DCD) in April 2017 to hold the price at 28ppl from July through to the end of September.
Chris Thomson, Group Procurement Director at Dairy Crest, said: “Since May, there have been some significant increases in dairy commodity prices, particularly fats.
“We have therefore decided, with support from DCD, to raise our milk price ahead of the expiry of our agreement made in April.
“We have significantly increased our Davidstow milk price since November 2016, in line with our commitment to be competitive and fair to the 360 farmers we work with in the South West.
“This will continue to be our approach, and is reflected in the price increase for September 2017.”
DCD Chairman, Steve Bone, commented: “We welcome the announcement that Dairy Crest... has recognised the improving market situation and will move outside the previous agreement, increasing the price paid to Davidstow suppliers by 1ppl from the 1st September 2017.”
This week it was revealed that an increase in the price of cream has forced Dairy Crest to take a step back on promotional deals in an attempt to relieve pressure on margins.
