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Dairy Crest reverses July milk price cuts

Dairy Crest has responded to growing signs of stability in the dairy markets by reversing plans to cut its milk price from July 1.

Dairy Crest's decision will bring relief to farmers
Dairy Crest's decision will bring relief to farmers

Dairy Crest is reversing the previously announced reduction to the milk price from 1 July 2016 in response to positive signs from the milk over the past fortnight.

 

The decision means its Davidstow core milk price will remain at 21.72ppl until the end of August 2016, ’one of the most competitive milk prices in the UK’, according to the company.

 

Ruth Askew, Head of Procurement at Dairy Crest said the company had seen ’some signs of stability in the dairy markets’ over the last fortnight and also hinted the company had responded to the views of farmers expressed at the recent Cornwall Show.

 

Dairy Crest said it wanted to respond ’as soon as possible’ and supply group DCD had accepted its offer.

 

Ms Askew said: "Dairy Crest is pleased to announce the reversal of the July reduction.

 

"We always aim to pay a fair, stable, market-related milk price. In the past fortnight, we have seen some signs of stability in dairy markets.

 

"We wanted to reflect this positively in our milk price at the earliest possible opportunity for the benefit of our farmers.

 

Farmer concerns

 

“We were delighted to meet with so many of our farmers at the Royal Cornwall Show earlier this month.

 

"We understand their concerns about long term security in the dairy sector. We hope this latest announcement will be welcome news for all of our farmers.

 

"This positive news is another sign of our confidence in the future of Dairy Crest and the wider British dairy sector.

 

She said Dairy Crest with its ’market-leading brands’, including Cathedral City, was ’well placed to continue to provide security and opportunities for growth for our supplying farmers’.

 

DCD Chairman Steve Bone said: “We are pleased that Dairy Crest will not implement the price reduction for July. We have been asking Dairy Crest to consider their position and this is a positive step.

 

"Both parties agree that working together to deliver stability for our farmers is imperative.”


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