British dairy company Dairy Crest is announcing that the milk price it pays to its Davidstow farmers will be reduced by 1ppl from 1st June to 29ppl and by a further 1ppl from 1st July.
The milk organisation says it will then hold the price at 28ppl until 30th September 2017. These changes have been agreed with Dairy Crest Direct (DCD).
Chris Thomson, Group Procurement Director at Dairy Crest, said: “To remain competitive a price reduction has regrettably become necessary.
“We know that our farmers need stability and certainty for the future. That is why we have spread the reduction over two months and agreed the price level for the next four months.
“This latest announcement builds on our actions at the end of last year when we responded quickly to the changing market environment through a series of significant price increases, followed by a hold for the last three months.”
DCD Chairman Steve Bone it has been 'difficult to agree' a milk price reduction.
“Whilst negotiating we believed that it was very important to put in place a period of stability which protects us as producers through a period where milk volumes are increasing, which is having an impact on dairy markets.”
