On 26 July Dairy Crest set aside a market-related farmgate milk price reduction it had planned from 1 August to give it time to discuss with its customers ways for Dairy Crest to support its farmers by paying higher milk prices.
Some customers agreed to pay Dairy Crest more from 1 August and Dairy Crest has funded the shortfall while discussions with other customers are ongoing.
Following those discussions, Dairy Crest has now requested cost price increases from customers and has agreed with representatives of its farmers, Dairy Crest Direct (DCD), that it will reflect increases it receives in its future farmgate milk price.
Commodity cream prices have also started to increase and this too will be reflected in future farmgate prices. Dairy Crest has a scheduled meeting with DCD later this month and it is anticipated that increased farmgate milk prices will be announced shortly afterwards.
Source: Dairy Crest
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