Dairy Crest announces double milk price cut

UK processor, Dairy Crest, has dropped its milk price for June and July by 1p/litre each month.

The price paid to the 370 producers on Davidstow contracts will be 29p/litre from 1 June and 28p/litre from 1 July.

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Dairy Crest, in conjunction with producer organisation Dairy Crest Direct (DCD), have committed to freeze the July price until 30 September 2017.

“To remain competitive a price reduction has regrettably become necessary,” said Chris Thomson, group procurement director at Dairy Crest

“We know that our farmers need stability and certainty for the future.

“That is why we have spread the reduction over two months and agreed the price level for the next four months. 

DCD Chairman Steve Bone said it was difficult to agree a milk price reduction.  

“Whilst negotiating we believed that it was very important to put in place a period of stability which protects us as producers through a period where milk volumes are increasing, which is having an impact on dairy markets,” he said.