Dairy Crest announces supplementary payment due to 'extreme weather'

British-owned Dairy Crest has announced it will put in place a supplementary payment of 0.5p per litre from September due to "extreme weather conditions".

The payment, for its Davidstow farmers, will be reviewed on a monthly basis and has been agreed with Dairy Crest Direct.

Many parts of England and Wales haven’t seen any significant rain since the end of May resulting in tinderbox conditions, severely reduced grass growth and depleted yields for some crops.

It has led the NFU to organise an agricultural drought summit to discus the crippling impact of the dry, hot weather on farms across the country.

Chris Thomson, Group Procurement Director at Dairy Crest said the company is "acutely aware" of the challenges farmers are facing at the moment.

“We are pleased that we can support them during this difficult period,” said Mr Thomson.

“Following the increase in the August milk price, we do not believe the current market conditions warrant a further uplift at this time and we will therefore hold our milk price at 30.4ppl for September”.

Together with the supplementary payment, all Davidstow farmers will benefit from a higher price for September, despite the hold in milk price.

DCD Chairman, Steve Bone added: “With the increasing challenge on farm due to weather, we welcome the support from Dairy Crest and their recognition of the situation.”