Dairy Crest has announced a further increase in the milk price it pays farmers, with its standard liquid price set to go up by 1 pence per litre and its Davidstow cheese price to go up by 1.25ppl.
Both price rises will come into effect on 1 January. They will take Dairy Crest’s standard liquid price to 30ppl and the Davidstow price to 30.25ppl.
Group milk procurement director Mike Sheldon said dairy farmers continued to be under pressure, and Dairy Crest was committed to supporting them. “Looking forward, we hope to be able to pay famers even more, but this increase and any future increases are dependent on our customers paying us more,” he added. “We believe that they share our determination to do the right thing by our farmers and by British agriculture.”
Commenting on the Davidstow contract increase, Sheldon highlighted the role of Dairy Crest’s Cathedral City Cheddar brand in enabling the company to pay a premium to farmers. “The success of Cathedral City means that we need more milk in the south-west, and this latest price increase shows our continued commitment to support our farmers and build their confidence for the future,” he said.
Sheldon warned, however, that the latest price increase would further widen the gap between the cost of Dairy Crest’s UK-produced cheese and imported cheese. “Looking forward, this is something we have to be mindful of,” he said.
Dairy Crest Direct chairman David Herdman welcomed both price increases. “The cost pressures on all dairy farms through 2012 remain unprecedented, and without further market-driven price movements to reflect these costs, milk production will continue to be significantly depressed,” he said.
Earlier this month, Müller Wiseman announced a phased 1.5ppl farmgate milk price, which will lift its price by 0.5ppl to 29.5ppl from 1 December and then by a further 1ppl from 1 February. Shortly afterwards, Arla announced a 1.3ppl increase to 28.83ppl, which comes into effect on 3 December.
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