DAIRY FARMERS supplying mozzarella specialist Dansco have reacted angrily to a price cut of 1.2p/litre announced at the same time as it was revealed that the company was increasing output and needed more milk.

In a letter to the firm‘s 160 suppliers, production director John Donovan said: “Unfortunately, in recent months the milk market has been placed under significant pressure mainly arising from unfavourable currency movements and reducing returns from export markets as the CAP reform begins to take effect.”

A farmer selling Dansco 1m standard litres at 4.1% fat and 3.3% protein in the top hygiene bands and qualifying for loyalty and quality bonuses will receive about 17.65p/litre before seasonality.

But the firm has warned farmers that further cuts could be on the way.

Mary James, NFU Cymru deputy director, said members were appalled that Dansco, like so many companies, was citing CAP reform as a reason for price-cutting well before any market impact was felt.