Dairy Crest standard liquid and Davidstow milk producers face a 1.1p/litre price cut from 1 September.

The price change reflected the market environment over recent months and would give a standard litre price of 30.1p/litre, said the company.

It added that the Davidstow contract was the only major contract that had not reduced its milk price this year and despite this reduction, paid one of the highest milk prices to farmers in the South West, at 32.1p/standard litre from September.

See also: Dairy Crest formula milk price drops after recovery

Both price changes have been agreed with producer group Dairy Crest Direct (DCD) and comply with the voluntary code 30-day notice period.

“Whilst I recognise that any correction in milk price is disappointing news for our farmers, I believe we have balanced taking action to reflect the market environment with our commitment to deliver greater price stability and reduce volatility to our farmers.”
Mike Sheldon, Dairy Crest Group procurement director

The liquid milk price adjustment will apply to suppliers with all or a proportion of their milk price on the company’s standard contract. Those on that contract will also be offered Dairy Crest’s formula contract for all or a proportion of their milk supply from 1 October. This cost tracker formula is paying 31.785p/litre for August, with an additional 0.19p/litre premium for those who signed up in April.

“Whilst I recognise that any correction in milk price is disappointing news for our farmers, I believe we have balanced taking action to reflect the market environment with our commitment to deliver greater price stability and reduce volatility to our farmers,” said Mike Sheldon, Dairy Crest Group procurement director.

The company is also developing further contract options.

While any price cut was a disappointment, DCD had worked with Dairy Crest to mitigate the extent of milk price cuts for as long as it could, and had agreed to these reductions applying later than others, said David Herdman, chairman of DCD.