Dairy farmers are to recieve less for their milk under new cuts by Dairy Crest.

Farmers on the Davidstow contract will see a drop by 1.1ppl following a ten month period of price stability. 

The Davidstow contract is the only major contract which has not reduced its milk price this year and despite the September reduction, it continues its track record of paying one of the highest milk prices to farmers in the South West, at 32.1 ppl for a standard litre.

The Liquid milk price adjustment will apply to farmers with all or a proportion of their milk price on the company’s standard contract.

A company spokesman said the price change reflects the current market environment over recent months and will give a standard litre price of 30.1 ppl from September.

Following the price announcements, Dairy Crest confirmed that it will offer their farmers on standard liquid milk contracts a further opportunity to take up their formula contract for either all or a proportion of their milk supply from 1 October.

Mike Sheldon from Dairy Crest said: “We have worked closely with Dairy Crest Davistow over recent weeks to agree these price changes and we will continue to review our milk price position together.

“While I recognise that any correction in milk price is disappointing news for our farmers, I believe we have balanced taking action to reflect the market environment with our commitment to deliver greater price stability and reduce volatility to our farmers.

“Dairy Crest depends on a sustainable supply of high quality British milk and we are immensely proud of our supplying farmers and the part they play in our world class supply chain.

David Herdman, chairman of DCD said, “We fully appreciate that any price cuts are a disappointment.

"However, DCD has worked with Dairy Crest to mitigate the extent of milk price cuts for as long as we could, and have agreed to these reductions applying later than others.”