April 9, 2009

Dairy Farmers of Britain has today announced a milk price reduction of 2.2p/litre, effective from April 1.

This reduction will apply across all its milk supply schedules and will be implemented as a reduction in the flat rate element, meaning that a standard black-and-white litre is now worth 20.2p/litre while the new organic standard is 30.65p/litre.

Chairman John Grantchester said the decision was made due to the significant weakening of the dairy markets and the fierce competition in the industry, which pressurised prices and margins across the company's product range.

In setting the April milk price, the Board has taken into account the company's short-term fall in revenue, the need to quickly conclude the reshaping of the business, and the requirement of the banking covenants, said Grantchester.