Dairy Crest slated over cut in milk prices

Jun 26 2009 by Karen Dent, The Journal

DAIRY Crest has been criticised for cutting the price paid to farmers supplying milk for its Davidstow cheese brand.

The company has imposed a 0.5p per litre (ppl) reduction, following a number of previous price cuts already imposed in February, April and May.

NFU Dairy Board chairman Gwyn Jones said: “I can see no change in the cheese market to warrant yet another 0.5ppl, which takes Dairy Crest’s total price cuts on cheese to a depressing 3.25ppl since February – that’s a cut of over £30,000 a year for their average dairy farmer supplier.

“For a plc that produces the market leading branded cheese to brag that it commands a premium over its nearest competitor in an attempt to soften the blow is rather sad.

“Why should a dairy company that has the luxury of handpicking its farmer suppliers for their size, geographical position and proximity to its creamery, with the resulting advantages of efficient milk collection, be expected to offer anything less than a price that’s better than its closest competitor?”

The reduction comes just a week after the latest DairyCo survey of farmer intentions in the dairy sector revealed that both confidence and milk production have reached all-time lows.

:: See tomorrow’s Journal for more on the crisis affecting the dairy sector.