Stronger cream markets have contributed to a small increase of 0.086p/standard litre for Dairy Crest Direct (DCD) milk producers in December.
This will take simplified and core formula producers who signed in June/September 2014 to 26.801p/litre and April 2014 signees to 26.991p/litre.
The move puts almost 5p/litre between DCD non-aligned standard producers before any supplements and those on the formula price.
However, next month’s review, which will set January prices, will be from a new base price which lops off a further 1.6p/litre. This was agreed in December 2014 with a 12-month notice period which has now almost run.
The November price change elements included:
- Better UK and EU cream markets in October, with AHDB recording a £40/t increase to £1,000/t
- Concentrate costs tracked in the formula fell by 50p/t for October to £221/t for an 18% protein product
- AN fertiliser values unchanged for the third month in a row – £232.50/t
- Weak oil markets and another fall in red diesel prices – to 44.51p/litre
- Retail milk at 98p/4 pints for the fifth consecutive month