Dairy Crest announces milk price increase - Farmers Weekly

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Dairy Crest announces milk price increase

Farmers supplying Dairy Crest are set to receive an extra 0.4p/litre for their liquid milk from 1 December.

About 1000 members of the dairy’s supply group will benefit from the increase, which the processor says will cover some of the higher costs farmers are set to face over the winter.

Arthur Reeves, Dairy Crest’s milk purchasing director, said the rise reflected the increases the processor had received from its middle ground customers.

“It is good to end what has been a challenging year with another increase,” he said.

Dairy cattle

“We recognise that some milk processors have been able to increase their prices by more than Dairy Crest this year.

“However, we believe Dairy Crest’s strong brand portfolio will benefit our milk suppliers in what could be a difficult 2008 if the recent fall in commodity returns continues into next year.”

Dairy Crest announces milk price increase

Dairy farmers supplying Dairy Crest are set to receive a boost next month as the dairy announced a further milk price increase.

Suppliers with standard liquid milk and cheese contracts for Davidstow and Hartington are set to receive an extra 0.6p/litre from 1 August.

Arthur Reeves, Dairy Crest’s milk purchasing director, said the recent strengthening of commodity prices should help lift all milk prices.

“However, this does not happen automatically and we are working hard to maximise returns from all market sectors,” he said.

“The increase to our liquid milk price reflects the continued strength of commodity markets and anticipates the higher returns we are seeking from our middle ground customers.”

While the processor had yet to achieve any increase in the cheese market, Mr Reeves said it had decided to pay the increase so its milk price remained competitive.

Dairy Crest announces milk price increase

Dairy Crest has increased the price it pays to its liquid milk suppliers by 0.25ppl.

Suppliers to the dairy’s general pool will receive the increase from 1 April 2007.

However the price paid to suppliers of milk for cheese will remain the same.

Dairy Crest’s increase to the liquid milk price follows a 1.3ppl increase to its Sainsbury Dairy Development Group suppliers from 1 April.

Arthur Reeves, Dairy Crest’s milk purchasing director, said the price rise reflected the increases the dairy had received from its customers.

“We appreciate that production costs have risen and will continue to work with our suppliers to deliver further milk price increases. 

Dairy Crest remains committed to a milk pricing strategy that is market related and transparent.’

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