Dairy Crest and milk supplier representative Dairy Crest Direct (DCD) have announced the launch of a new formula-based milk contract – a move both parties hope will take “some of the heat” out of milk price negotiations.
The contract will provide a “more transparent” method of establishing milk price movements, Dairy Crest and suppliers have claimed. The contract will be available to all farmers supplying Dairy Crest on standard liquid contracts from 1 April 2013.
“I am delighted that our farmers have welcomed the development of a formula based contract. We have received come very positive feedback from our recent series of farmer workshops,” said Dairy Crest procurement director, Mike Sheldon.
“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.”
DCD chairman, David Herdman, has also welcomed the new contract.
“The formula provides a fair and transparent process that is related to both the market and on-farm costs,” said Herdman.