Dairy parlour© FLPA/Rex Shutterstock

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.

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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