;

Dairy Crest holds milk prices for October

08/09/2015

Dairy Crest has confirmed that it will hold the October milk price for its Davidstow and Liquid contracts. This has been agreed with DCD.
The Davidstow milk price, at 26.42* ppl continues to be one of the highest milk prices paid for a manufacturing contract.

The average price paid to Dairy Crest’s non-aligned Liquid farmers is currently 23.5 ppl. This is a weighted average of Dairy Crest’s standard Liquid milk price, 21.69* ppl, and Dairy Crest’s Formula contract, which for October is calculated at 27.27* ppl.

Mike Sheldon, Managing Director of Dairy Crest’s Dairies business stated:

“This is a really tough time for all of us in the dairy sector. With the challenges of sustained low market returns we are therefore pleased to be able to hold both our Davidstow and Liquid milk price for October. To compound the impact of the depressed markets, milk supply has remained significantly above levels expected for this time of year and so we have a greater proportion of milk processed into commodity products."

“We continue to do everything we can to support our farmers. We know how important price stability is and our Formula contract has helped deliver this during recent months for over 200 of our farmers on standard liquid contracts. We believe the sale of our Dairies business to Muller Wiseman will create a business of scale and focus that will benefit British dairy farmers at a time when they need it most.”

In response to retailer reports regarding the provision of financial support for British farmers, Mr Sheldon stated:

“Retailer support for dairy farmers is positive news. We are not yet in a position to confirm what this means for our farmers on non-aligned Liquid contracts. However, we have clearly committed to DCD that all money we receive from our customers to support farmers will be used to supplement the milk price we pay.”