Dairy Crest acts to seek long term solution for dairy sector
Dairy Crest is announcing today a further initiative to find a long term solution for the dairy sector. It is setting aside for two months the milk purchase price cut that was due to be implemented on 1 August.
The delay will give Dairy Crest and its farmers time to continue to work together to seek solutions to the current difficulties that are facing the Dairy sector and are affecting farmers and processors alike.
Two of Dairy Crest's customers have already agreed to pay a supplement to support farmers. Although all of the additional revenue from these customers will be fed back to farmers it is not enough to completely reverse the previously announced cut. However, in the short term, while discussions with other customers are ongoing, Dairy Crest will make up any shortfall itself.
This builds on a number of previously announced initiatives by Dairy Crest to help mitigate the impact of the price cuts, including:
Introduction of new contract terms allowing farmers supplying Dairy Crest to move their milk supply with only 3 months notice following a milk price reduction.
Giving farmers longer notice of any price changes.
Appointment of an independent consultant to review the mechanism behind the company's farm gate milk pricing process.
Mike Sheldon, Milk Procurement Director, commented:
"We are in no doubt about the difficulties that the farmers affected by the forthcoming August price cut have been facing. Our bold move to set aside this cut for two months will allow us to continue to work with our farmers to find long term solutions. We remain committed to paying fair milk prices - a commitment fully demonstrated by today's decision."
For further information, please contact:
Dairy Crest Group plc
Arthur Reeves 01372 472236
Simon Sporborg 020 7404 5959