Dairy Crest Direct formula milk price to fall

Dairy Crest Direct’s formula milk price will reduce for the third month in a row from 1 January.

This means that the 175 farmers signed up to the formula contract will receive a standard litre milk price of 31.489p/litre, which is 0.195p/litre lower than their December price.

Launched in March this year, the contract calculates a monthly milk price via a formula tracking five key costs: bulk cream, retail liquid milk (four pints), concentrates, fertiliser and red diesel.

The January price change comes about on higher cream prices, static concentrate costs and retail milk prices, and higher fertiliser but lower fuel prices.

More on this issue

Dairy Crest launches formula-based contract