This is the first increase to apply to the DC/DCD developed formula contracts since July 2014.
A spokesman for DCD which represents the 1,100 dairy farmers who sell their milk directly to Dairy Crest, said the increase was ‘a small but welcome turnaround in milk pricing’.
“It also needs to be remembered that this contract has only been available to those that supply DC via non aligned liquid contracts, who made this choice to secure milk volumes priced via this option,” said the spokesman.
“These contracts are certainly showing the benefit of a formula based on both a blend of markets and farm costs.”
The advantage of the formula price versus standard litre now increases to deliver in excess of over +5.4p/l from April.
Source: Farmers Guardian