Crest pays 1.5p more for liquid milk

By FWi staff

LIQUID milk suppliers are set to be the main beneficiaries of the latest round of price negotiations, if Dairy Crests offer sets a trend.

Dairy Crest has announced that it will pay direct liquid milk suppliers an extra 1.5ppl from 01 April, but its manufacturing milk suppliers will receive no increase.

There are concerns that this will create a worrying precedent, penalising milk producers supplying manufacturing plants.

Both liquid and manufacturing milk suppliers are equally unimpressed by Dairy Crests offer.

Manager of West Country Milk Producers Bryan Lewens says his members are exceptionally annoyed that it excludes Cornish milk producers from any price rises.

The new contracts being offered in the west country mean that only Unigate suppliers based in Devon will benefit from the 1.5p increase, because they are classed as liquid milk producers.

“It is becoming increasingly difficult to get more money for milk in the south west, particularly in the cheese market.”

He fears that combined with foot-and-mouth movement restrictions, producers in the region may be forced out of the industry, with no-one to take their place.

James Alston, chairman of Anglia Milk Producers, another group that supplies milk direct to Dairy Crest, is equally confused by the offer, although most of his members will gain from the 1.5p increase.

He is annoyed that cheese suppliers will lose out, but believes Dairy Crest must have a strategy behind the move.

Industry sources reckon it is a bid to keep hold of liquid milk direct suppliers, before they switch to co-ops.