Dairy Crest is reversing the previously announced reduction to the milk price from 1 July 2016. The last fortnight has seen some signs of stability in the dairy markets and Dairy Crest wanted to respond as soon as possible. DCD accepted this offer. This means the Davidstow core milk price will remain at 21.72ppl* until the end of August 2016. This is one of the most competitive milk prices in the UK.
Ruth Askew, Head of Procurement at Dairy Crest, 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.
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. We have market-leading brands, including Cathedral City, as well as our developing infant formula business which gives us access to high growth, high margin markets. Dairy Crest is well placed to continue to provide security and opportunities for growth for our supplying farmers.”
DCD Chairman Steve Bone commented:
“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.”