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DairyCrest Announces New 'Non-Aligned' Contract

12 March 2013

UK – Processing Company DairyCrest has announced a new ‘non-aligned’ liquid contract option that will formulate milk price calculations according to market returns and input cost.

Jointly launched with Dairy Crest Direct (DCD)from 1 April 2013, the contract will take into account  bulk cream and retail liquid milk market values and feed, fertiliser and fuel costs.

The price mechanism was developed by private consultant and dairy industry expert, Stephen Bradley, following the historic Dairy Code of Practice agreement- signed in September 2012.

Dairy Crest Group Procurement Director, Mike Sheldon, reported that there had already been a significant level of interest in the formula. "I am delighted that our farmers have welcomed the development of a formula based contract. We have received some very positive feedback from our recent series of farmer workshops.

"As the number one UK-owned dairy company, Dairy Crest is committed to supporting and working closely with our British dairy farmers. The formula is a great example of farmers and processors coming together to make the production of British milk more sustainable."

DairyCrest hope the option will make milk price negotiations easier and put the industry in a position of long term security.

Farmers are able to apply to put all their milk or a 25, 50 or 75 per cent portion into the scheme which starts at a price of 29.95 ppl.

Up to 100 million litres for the 2013/14 milk year could be paid for under the formula. Applications are on a first come, first served basis.

TheCattleSite News Desk

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