25 June 2009

1 minute read

Europe

Mr 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?

"Dairy farmers in the South West will be severely depressed by this news, which ironically comes just a week after DairyCo released the results of its Farmer Intentions Survey, revealing that farmer confidence and milk production are at all-time lows. We need to see greater stability and certainty in the dairy industry, but, frankly, cutting the price then offering an assurance that things can't get any worse for four months doesn't quite fit the bill."

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