Dairy Crest is announcing a further 1.78ppl milk price increase from 1 December 2016. This has been agreed with producers’ group Dairy Crest Direct (DCD).

The rise marks the fourth consecutive monthly increase in farmgate price since September, with a 0.5 pence per litre rise coming into effect on Tuesday (1 November).

This means the Davidstow milk price will be 26ppl from 1 December 2016.

Ruth Askew, Head of Procurement at Dairy Crest, commented on the raise, “We are committed to investing in our supply chain and ensuring a sustainable supply of top quality milk for our leading British cheese brands – Cathedral City and Davidstow – and our growing infant formula business.

“During the unprecedented deflation we have seen in dairy markets over the last 18 months, Dairy Crest established a clear track record in maintaining a consistent and stable price for our dedicated pool of farmers in the South West, paying a premium above other major processors.”

DCD Chair Steve Bone commented, "Dairy Crest has paid a consistently higher price for milk than other major liquid/cheese manufacturers during the downturn. We are pleased that in agreeing to increase the milk price for December, our members will continue to receive a market leading milk price.”

However, the NFU has been highly critical of the slow recovery since the reversal in dairy’s fortunes in the spring. Speaking ahead of the Dairy Show in October, NFU dairy board chair Michael Oakes said, “Farmers have been patient, understanding the time lag that is part of dairy trade. But that reason is starting to wear thin, as we need to start considering increased costs of winter housing and feeding.”

Mr Oakes said, “Since May this year market indicators have started to show a massive differential between what prices dairy farmers should have got compared to what they actually did get – between June and September this adds up to around £200 million.”