7 November 2007

1 minute read

Europe

The sixth increase in seven months, this rise brings the extra return the business has been able to secure from the market since June to 8ppl. It takes industry standard litre prices on its various contracts for the vast majority of members to at least 25ppl before seasonality. Seasonality bonuses further make additional litres produced above each member’s trigger level worth between 32ppl and 39ppl.

“We are pleased to have been able to announce another substantial price increase this year,” commented DFB Director of Membership, Matt Sheehan. “We would like to have made this increase effective from November, but this is the earliest opportunity our trading commitments allow us to reap the sustainable raw milk price benefits of our continuing customer re-negotiations.

“Although it meets our previously-announced base price expectation for the year end, we are continuing to work as hard as we can with our customers to secure further sustainable increases from the market so we can provide them to our members as soon as possible.”

The latest increase will be applied to the flat rate element of all DFB’s conventional B & W schedules with an equivalent adjustment made in prices paid to the Channel Island and Organic pools. The price paid for Tesco Localchoice milk remains at 28.5 ppl for the time being.

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