Dairy Crest, the leading British dairy company, is announcing a reduction of 1.25 ppl for farmers on Davidstow and standard Liquid contracts from 3rd January 2015. This has been agreed with DCD.

•  For farmers on a Davidstow contract this takes the price to 27.79* ppl for a standard litre from 3rd January 2015.

• The Liquid milk price for farmers with all or a proportion of their milk price on the standard Liquid contract will be 25.79* ppl.

Commenting on the price moves Mike Sheldon, Dairy Crest Group Procurement Director, said: “I understand this will be disappointing news for our farmers who were hoping, like us, that the situation might have started to improve.  I was pleased to agree the price hold for December, providing some respite for our farmers, but cannot continue to maintain the price against the backdrop of such extreme market volatility and increasing levels of milk production.   

“Our process for reaching this pricing decision with DCD has been very detailed, which is why we have run beyond the month end.  We have been continually reviewing all the factors that impact the price and exploring different approaches.  Whilst we are all operating in a very challenging market, I am confident that our offer to farmers is competitive.  We also remain committed to providing 30 days’ notice of any price change, which is why this move is effective from 3rd January.”