Dairy Farmers of Britain is the latest milk buyer to inflict a swingeing price cut on its suppliers.
The farmer-owned milk co-op said today (30 June) that it was reducing its July price by 0.7p/litre.
This compares with a cut of 0.75p/lire by Dairy Crest and a reduction of up to 1.8p/litre by Arla Foods.
Matt Sheehan, director of membership, blamed the decrease on widespread downward pressure in prices for dairy products.
This included a highly competitive liquid milk sector, weakening returns in the bulk cheese market and falling butterfat values.
However, he said the cut would have been worse if DFB hadn’t developed its own processing capacity and value-added brands.
“As a result we have been able to delay reducing our milk price and to hold the reduction to a level that is less than that seen elsewhere in the sector in recent months.”
Farmers supplying a standard Farmers Weekly litre (everyday collection, 4% butterfat, 3.3% protein and 2201 litres/day) will now receive 16.65p/litre.
But a spokesman said many of its members hitting bonus targets would still be achieving over 18p/litre.