Dairy Crest (DC) and Dairy Crest Direct (DCD) have announced that over 98% of the core volume supplied to the Davidstow Creamery has signed up to the new Davidstow Milk Balancing Contract.
The contract came into effect on 1 April 2016.
Ruth Askew, Head of Procurement, said: “The Davidstow Milk Balancing Contract has been developed jointly with DCD to manage excess volumes at Davidstow.
"We hope that the contract will help Dairy Crest and its supplying farmers to manage future volatility, making our businesses more sustainable."
The contract has been jointly developed by DC and DCD to improve the current milk supply model.
It will help ensure that supply of milk is better matched to the requirements of the Davidstow creamery and give farmers more information allowing them to plan for the future.
Milk price stability
Dairy Crest is holding the milk price for all farmers until June. The core price remains at 22.72ppl.
Ms Askew said: "Dairy market conditions remain under extreme pressure.
"Dairy Crest always aims to provide as much stability for our farmers as we can.
"This is why we have agreed to hold our milk price - for everyone - until June, in the hope this will provide some certainty during the Spring flush.
"Despite the challenges we are all facing, the Davidstow milk contract remains one of the most competitive in the South West."
