Dairy Crest is the latest processor to announce an improved price for milk, proof of a more positive market.
The milk buyer announced a 1p/litre increase to come into effect on 1 September, raising the Davidstow core rate to 22.72p/litre.
The rise follows a reversal by Dairy Crest of a previously announced 1p/litre reduction to the milk price from 1 July 2016, reflecting signs of stability in dairy markets. About 400 farmers supply Dairy Crest, mainly with milk for cheese, including the Cathedral City brand.
The price rise comes as the latest UK milk production figures for the first half of July showed a 10.2% drop compared with the same period last year.
“We are proud that the Davidstow contract has remained one of the most competitive milk prices in the UK throughout extreme downward pressure on the supply chain,” said Ruth Askew, head of procurement at Dairy Crest
She added: “We are increasing our milk price against a backdrop of falling UK milk production. Dairy Crest wanted to reflect this in our milk price as soon as possible.
“We hope that this positive news will provide our farmers with some confidence as we head into the autumn.”
“We are confident our business strategy is creating exciting opportunities to add value to milk produced by British farmers.”
Dairy Crest is the second milk processor to announce a price increase today, following First Milk’s price rise decision yesterday.