Farmers Guradian
Topics
Nine ways to keep your farm vehicles safe

Nine ways to keep your farm vehicles safe

Arable Farming Magazine

Arable Farming Magazine

Dairy Farmer Magazine

Dairy Farmer Magazine

LAMMA 2018

New to Farmers Guardian?
Register Now
Login or Register
New to Farmers Guardian?
Register Now
New to Farmers Guardian?
Register Now

You are viewing your 1 free article

Register now to receive 2 free articles every 7 days
Already a Member?

Login | Join us now

First Milk farmers see further cuts as Dairy Crest producers offered make-or-break contract choice

Both firms pointed to the continuing downturn in milk markets as they announced the changes to contracts


Twitter Facebook
Twitter Facebook

First Milk farmers have been hit with a further cut in prices, while Dairy Crest suppliers will be forced to sign up to a new contract or stomach a 0.8ppl cut in milk cheques.

 

Both firms pointed to the continuing difficult market conditions as they announced the contract changes.

 

Those supplying First Milk’s four creamery pools plus its North of England balancing pool will face a 0.6ppl cut in price for March. Those on Scottish balancing pool will have returns cut by 0.42ppl, while there was no change in the Midlands balancing pool price.

 

First Milk’s external relations and membership director Paul Flanagan said improved business performance meant the firm was able to increase the proportion of milk paid on its higher A price from 80 to 90 per cent from April.

 

"However, for March the continued weak market conditions and plentiful supply of milk has impacted on the pricing mechanism we have in place for our cheese business. Therefore, we need to cut prices for those milk pools which are linked to cheese manufacture," he added.

 

Dairy Crest’s announcement saw the firm offer producers a choice to sign up to a new Davidstow Balancing Contract or accept a 0.8ppl cut in prices from April.

 

The contract will use a price for ’core volume’ which will be negotiated between Dairy Crest and DCD on a monthly basis. Milk supplies exceeding this will be priced using a market related indicator.

 

The firm said the mechanism aims to better match supply to the needs of the Davidstow creamery.

 

Ruth Askew, head of procurement at Dairy Crest, said: "Dairy Crest’s aim, with DCD’s support, is to work in partnership with farmers to grow and expand our brands and products and so, in time, increase our demand for milk. However, the current milk supply model is not sustainable."

 

Those farmers who sign up to the new contract will see prices held at the current 22.72ppl until May 31. Dairy Crest claimed this would give core price stability during the spring flush of milk.

 

Farmers who do not sign up to the new mechanism will have prices cut 0.8ppl to 21. 92ppl which will take effect from April 1.

 

Dairy Crest bosses claimed this reflected the current market conditions as well as the cost of balancing excess milk.

 


Read More

Arla Direct suppliers handed 12 months' notice Arla Direct suppliers handed 12 months' notice
Dairy Crest slashes Davidstow price by 1.6ppl as First Milk also cuts Dairy Crest slashes Davidstow price by 1.6ppl as First Milk also cuts
Dairy Crest spreads and cheese 'perform well' in difficult market Dairy Crest spreads and cheese 'perform well' in difficult market
First Milk continues leadership shake-up with new member council First Milk continues leadership shake-up with new member council
First Milk cuts ties with Westbury Dairies after 12 years First Milk cuts ties with Westbury Dairies after 12 years

First Milk A prices for March

Lake District creamery 17.51ppl
Haverfordwest creamery 17.51 ppl plus Tesco winter supplement

Scotland balancing 17.51ppl
North England balancing 17.52ppl
Midlands and East Wales balancing 17.28ppl

Twitter Facebook
Post a Comment
To see comments and join in the conversation please log in.
Facebook
Twitter
RSS
Facebook
Twitter
RSS