Dairy Crest has announced a reduction of 1.75 ppl for farmers on standard liquid and Davidstow contracts from 1 October 2014.
For farmers on a Davidstow contract, this takes the price to 30.34 ppl for a standard litre from 1 October 2014. The Liquid milk price for farmers with all or a proportion of their milk price on the company’s standard contract will be 28.34 ppl from 1 October 2014.
A company statement reads:
“As has been widely reported, global dairy markets have fallen dramatically over the past few weeks at an unprecedented speed and level,” said Dairy Crest Group procurement director Mike Sheldon. “Unfortunately, we have had to reflect this within our milk prices for October.
“I understand that this reduction will be really disappointing news for our farmers. However, having discussed our position at length with DCD, they recognise the severity of the situation.
“I recognise that price volatility is difficult for farmers and processors alike, which is why Dairy Crest and DCD pioneered the development of a liquid formula that helps to smooth out the peaks and troughs. We will be offering further volume to farmers from 1 October.
“I also urge farmers to take advantage of the full range of farm support services that Dairy Crest provides. These include our White Gold Service and individual Farm Business Review, which are designed to help farmers to earn the maximum benefit from their contract.”
Source: Dairy Crest
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