Dairy Crest slashes 1.6p/litre off Davidstow milk price

Dairy Crest is to slash its Davidstow milk price by 1.6p/litre from 1 March 2016, meaning its 400 Dairy Crest Direct suppliers will receive 22.72p/litre.

The company’s head of procurement Ruth Askew admitted it was disappointing news but emphasised that dairy markets are under extreme pressure and milk supply remains high.

In October Dairy Crest announced a 0.6p/litre reduction in its DCD price from 1 December, but also introduced a price floor of 24.32p/litre through to the end of February to help provide some certainty to farmers over the winter months.

<p”>“Dairy markets are under extreme pressure and milk supply remains high,” said Ms Askew.

“The performance of our cheese brands has enabled us consistently to pay a leading milk price for our Davidstow milk. 

“However, we are not immune from market forces and must take responsible action to make sure our products are competitive.  

“Going forwards our focus will be on growth, through both our branded cheese and spreads operations, as well as new revenue streams from manufacturing demineralised whey powder and galacto-oligosaccharide. 

As a signatory to the Voluntary Code, Dairy Crest has given its suppliers at least 30 days’ notice of the price change.