South-western milk processor Dairy Crest has announced it will hold the milk price it pays to its Davidstow farmers for November at 30.9p/L.
This includes the supplementary payment of 0.5p/L introduced in September to reflect current feed shortages.
The company is also introducing a “milk price floor” to this combined price of 30.9p/L through to the end of January 2019.
It means the price over these two months will not dip below this level.
Providing security to suppliers
Chris Thomson, group procurement director at Dairy Crest said: “During the last month we have seen commodity markets weaken.
However, in order to provide certainty to our 330 South West farmers as we go into winter, we have made a commitment to hold our combined milk price at 30.9p/L for November, as well as introducing a floor for a further two months.
Dairy Crest Direct chairman Steve Bone added: “Recognising weakening markets, to give our members security, we have agreed on an effective minimum price of 30.90p/L until the end of January 2019.”
Best known for its consumer brands Cathedral City, Clover, Country Life and Frylight, Dairy Crest is one of Britain’s leading locally-owned dairy companies.
The firm also manufactures demineralised whey powder and galacto-oligosaccharides (GOS) – a lactose-based prebiotic, both widely used in infant formula.
Editor’s note: An earlier version of this story stated that Dairy Crest was farmer-owned. AgriLand is happy to clarify that this is not the case.
