UK - Diary Crest has announced a hold for its December standard milk price and a reduction in its premium Davidstow milk price.
The average price paid to Dairy Crest’s non-aligned Liquid farmers will remain at 23.3 pence per litre (ppl), whilst the Davidstow milk price will reduce by 0.6ppl to 24.32 ppl.
As well as these prices, Dairy Crest announced a milk price floor for its Davidstow suppliers for the three months up until the end of February 2016. During this time there will no further reductions to the Davidstow price.
NFU dairy board chairman Rob Harrison said: “This announcement by Dairy Crest, which follows a similar move by Arla in holding its liquid milk price for November, shows some sort of stability within the market. With the winter period upon us and production costs increasing as cattle are housed, it’s good to see prices start to firm, albeit at a level that’s far too low to support a sustainable dairy industry."
Ruth Askew, Head of Procurement at Dairy Crest, commented: “Dairy Crest aims to provide a fair, stable and market-related milk price to all of our supplying farmers. In a challenging market, I am pleased that we have been able to hold our Liquid milk price for another month.
“In order for our cheese business to remain competitive, we have had to adjust the December milk price for our Davidstow contract. Whilst I realise this will be extremely disappointing news to farmers, Dairy Crest has tried to bring as much stability as possible by introducing a milk price floor until the end of February 2016.”
Rob Harrison responded to the difficulties facing the cheese market by saying: "“We’ve seen some moves at retail to better support milk for cheese, both in improved sourcing and pricing, but unfortunately these remain in the minority.
"UK retailers and other end users need to have a thorough look at their cheese sourcing policies to ensure that they are paying a fair, transparent price."
TheCattleSite News Desk