Dairy Crest and Dairy Crest Direct (DCD) were joined this week by David Heath, Farming Minster at an event in the House of Commons to launch the new milk price formula to parliamentarians. Mark Allen, Dairy Crest’s Chief Executive went along with David Herdman, the Chairman of DCD and Stephen Bradley, the consultant who was jointly commissioned by Dairy Crest and DCD to construct the formula, to explain how the ground-breaking formula works and answer any questions from MPs and peers.

Speaking after the event, Mark Allen said, “As the number one British dairy company, Dairy Crest is committed to supporting and working closely with our 1, 300 dairy farmers. That means paying a fair, market-related price for milk which recognises the tough conditions our farmers continue to face. This week, I was delighted to announce an increase of 1.5ppl to our farmers on a standard liquid milk contract – a record high.

“Last year we were the first processor to sign up to the voluntary code 100 per cent and in April, jointly with Dairy Crest Direct,  we were the first to offer our farmers on a standard liquid milk contract the opportunity to move to a milk price formula. We will continue to work with our farmers and the Government for the future of the British dairy sector.”

Farming Minister David Heath said, “The bad weather has been a real blow to dairy farmers, but the Code is a sign of what can genuinely be achieved through collaboration and overcoming differences. The milk price formula is a great opportunity to help build trust in the dairy sector and allow for long-term planning by dairy farmers.”

DCD Chairman David Herdman echoed these views. “Developing this joint formula with Stephen Bradley has been a really valuable process.  The formula provides a fair and transparent process that is related to both the market and on-farm costs.”