Dairy Crest and DCD in deadlock as a 1ppl price cut is imposed – from 1st May

Dairy Crest have imposed their first price reduction of 1ppl for May having failed to reach agreement with DCD for the first time since the formation of the DPO.

This 1ppl reduction takes producers standard manufacturing litre milk price to 28ppl and based on a standard liquid litre to 26.92ppl, which it has to be said is a healthy May price.

Deadlock means that any DCD Davidstow farmers can leave only serving 3 months termination notice as opposed to the contracted 12 months.  Any who do leave will automatically forgo their 1ppl loyalty bonus for the three months.  The resignation opportunity is open for 30 days.

Whilst on the face of it it sounds like a big call the alternative milk purchasers are unlikely to see orderly queues of DCD farmers wanting to sign up given their current prices.