On Monday, Dairy Crest announced a 2 pence per litre price rise to suppliers, as Muller, which bought the company out late last year, raised prices by 2.5ppl. Both rises are effective from January.  

Dairy crest’s 2ppl rice for January will be followed by an equal rise for February, the processor said. The rises have been agreed with Dairy Crest Direct (DCD).

This means the Davidstow milk price will be 28ppl* from 1 January 2017 and 30ppl* from 1 February 2017.

Ruth Askew, Head of Procurement at Dairy Crest, said, “Dairy Crest is delighted to announce these substantial price increases. Throughout the last eighteen months – some of the most difficult which dairy farmers have faced in recent years - Dairy Crest has been proud to pay a leading milk price. As the market continues to strengthen, we want to reflect this in the price we pay to our farmers. This significant move reflects Dairy Crest’s determination to build confidence and resilience within our milk pool.”

DCD Chairman Steve Bone commented, "We are really pleased that Dairy Crest has acted decisively by increasing the price and doing so over a two month period. This is what we needed from our negotiations and it will give our farmers a much-needed boost in confidence as Winter kicks in.”