With Arla having announced a price cut at the end of last week, a further wave of reductions among the big milk buyers is expected this week.
Dairy Crest’s 1.33ppl reduction, announced on Tuesday morning, means:
Mike Sheldon, Dairy Crest Group procurement director blamed the situation with global commodity markets for the latest in a series of price reductions.
He said: “We are very disappointed to have to make this further price announcement to our farmers.
“The situation in global commodity markets, which directly impacts our domestic returns especially whilst milk production remains strong, has not improved.
“We have therefore had to reflect this in our November milk prices.
“This is a challenging time for the dairy sector and all of us who work in it. We hope that the dairy markets will return to a steady footing soon, but in the meantime we will continue to work in partnership with DCD to deliver a robust support package for all of our supplying farmers.
He said the company was pleased that over 200 of its farmers have now taken up the opportunity to put some or all of their milk volume on one of its Formula Contract options.
“Following the latest offer process, for Formula Contracts from October 2014, all the milk available was signed up and we are in the process confirming the outcome to the farmers who applied,” he said.
Last week the company announced plans to axe 260 jobs from its ‘loss making’ dairies division.
Dairy Crest, whose main consumer brands are Country Life, Clover, Cathedral City and FRijj, buys around 2 billion litres a year from around 1,100 British dairy farmers.
400 farmers in the South West supply our Davidstow cheese contract.
In July, Dairy Crest announced that it has entered into a strategic partnership with Fonterra, the world’s leading dairy exporter, to market and sell two products for the fast growing global infant formula market.