Dairy Crest ups milk payments to farmers

26 September 2012

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26 September 2012 | Anna Reynolds

Dairy Crest has announced it will increase the price it pays on contracts for milk and Davidstow cheese to 29 pence per litre.

The increase of around 3 pence per litre will be introduced from 1 November and benefit around 1,000 farmers that supply the company. It follows Dairy Crest's decision to set aside a planned price cut in August. This means the company’s price paid is now higher than it was before the price started to fall in May.

The increases reflect improving returns from commodity markets and higher selling prices that Dairy Crest is asking from its customers. Due to the difficult weather conditions and poor markets this summer, dairy farmers have experienced higher on-farm costs.

Mike Sheldon, group milk procurement director, said in a statement: “We have responded by working on a formula-based pricing model, setting aside planned price cuts, and now we are increasing prices at the first affordable opportunity, as we committed to do.

“As the only major processor in British ownership, Dairy Crest's future is strongly linked to that of our farmers. We want and need our farmers to be successful.”

In August, Dairy Crest became the first milk purchaser to implement the new voluntary code of practice for milk contracts, which helps farmers by giving them the right to walk away from a contract if they are unhappy with any price change.

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