April 23, 2009

Dairy Crest has announced a price cut for milk supplied by farmers next month.

Milk for cheese price will decrease by 0.5p/litre and the standard liquid base price will fall by 0.85p/litre from May 1, 2009, onward. Producers not aligned to a retailer milk contract will get a slight increase of 0.1p/litre in the regional premium, taking the overall liquid price cut to 0.75p/litre.

The price cut is due to the challenging market environment and a response to remain competitive in the current marketplace, said Dairy Crest procurement director Mark Taylor.

Taylor said in reaching agreement with Dairy Crest Direct (DCD) on the level of price reductions, the company has taken into the account the pressures faced by direct suppliers.