DAIRY food company based in Davidstow, Dairy Crest, has announced a further 1.5ppl milk price increase will be phased in over the next two months starting on October 1.

Dairy Crest Direct (DCD) has agreed that a 1ppl increase will be made to the price in October, with a further increase of 0.5ppl being applied from November 1.

The Davidstow milk price will continue to be the leading position in the manufacturing league tables — with a price of 23.72ppl from October 1, and 24.22ppl from November 1.

Ruth Askew, head of procurement at Dairy Crest said: “Dairy Crest is pleased to announce further increase in our September price. At the end of August, we negotiated and agreed with DCD a hold for our October milk price. Since then we have seen inflation across dairy markets and milk volumes continue to fall.

“We want to take positive action and reflect these market conditions as soon as possible in our October and November milk prices. Dairy Crest has ambitious growth plans for our leading British cheese brands — Cathedral City and Davidstow — as well as our new infant formula products, demineralised whey powder and galacto-oligosaccaride (GOS). Our farmers are critical to these growth plans.”

She added how this move would help local British farmers who have been affected by difficult conditions on farm as the industry has dealt with deflation in the last 18 months. She said: “This latest two-phased milk price increase demonstrates that we are determined to continue paying a leading price to support and grow our milk field in the South West. We are committed to reviewing market conditions on an ongoing basis.”

DCD Chariman Steve Bone said: “I am pleased that Dairy Crest has announced increases to the October and November milk prices ahead of the competition.

“They have recognised our position and have been quick to respond to the improving dairy markets.

“This means the Davidstow milk price remains one of the leading manufacturing prices.”