Dairy Crest will increase the price it pays producers on its Davidstow contract by 1p/litre from 1 June.
The increase, which will affect 400 producers in the South West, will bring the standard litre price up to 31.25p/litre.
This follows news earlier this week (Tuesday 23 April) that Dairy Crest’s liquid producers will receive a 1.5p/litre increase to 31.5p/litre from 1 June.
In addition, the company announced plans to enhance its liquid milk volume incentive scheme. Producers who meet at least 2% volume growth, compared to the 2012-13 milk year, will receive an extra 2p/litre on all litres produced above that base year.
“We recognise the extremely difficult conditions our farmers are facing, with the late spring adding to the severe impact of last year’s poor weather conditions. This latest increase demonstrates our real commitment to our Davidstow farmers,” said group procurement director Mike Sheldon.
“As our successful Cathedral City and Davidstow cheese brands continue to grow, we need more milk for our Davidstow Creamery. We want to support our farmers to maintain and, where possible, increase production so that we can achieve this growth. Milk supply is increasingly competitive and we are determined to continue paying a leading price to protect and expand our milk field in the South West.”