Farmers supplying Dairy Crest will receive less for their milk next month after the company became the latest to announce a price cut.
From 1 May its milk-for-cheese price will decrease by 0.5p/litre and the standard liquid base price will fall by 0.85p/litre. Producers not aligned to a retailer milk contract will get a slight increase (0.1p/litre) in the regional premium, taking the overall liquid price cut to 0.75p/litre.
“Today’s announcements are in direct response to the challenging environment we face,” Dairy Crest milk procurement director Mark Taylor said. “We have had to take action to remain competitive in the current market place, but in reaching agreement with DCD [Dairy Crest Direct] on the level of price reductions, we have taken into account the pressures facing our direct suppliers.”
DCD chairman David Herdman said he was concerned about the impact the latest cuts would have on farms, but acknowledged Dairy Crest had tried to mitigate the full impact of current market conditions.
“In today’s climate, stability is crucial for our members and we have challenged Dairy Crest to hold these milk prices for as long as possible,” he said.