At the close of the application process the target volume of 100ml had been filled with 175 farmers opting to place either all or part of their milk supply on the formula contract for the coming milk year.
DCD Chairman, David Herdman welcomed the result. “It is very encouraging to see that around 30% of our members on Liquid contracts have committed to the formula. Developing greater trust and transparency within milk pricing has always been a DCD priority and we are pleased that, working with Dairy Crest, we have jointly brought this Formula to reality – a first for farmers on standard Liquid contracts”.
Dairy Crest group procurement director, Mike Sheldon, said: “I’m really pleased that our farmers have shown their support for this new concept for determining the movements in our raw milk price. This result indicates they value the simplicity and transparency which underpins our formula.
“We now have a great opportunity to move forwards with our farmers and look to expand Formula based pricing beyond standard Liquid contracts. I also want to focus on working closely with DCD on projects to benefit Dairy Crest and our farmers.”
Dairy Crest has informed farmers that they have been successful with their Formula Contract applications.
Source: Dairy Crest
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