Dairy Farmers of Britain has announced that it is to make a further reduction to its members’ milk price this year.
Backdated to 1 April, DFB will reduce the flat rate it pays members for their milk by 2.2 ppl across all of its supply schedules.
DFB chairman John Grantchester said the decision reflected a short-term fall in revenue at DFB, a recent reshaping of its business and the requirements of its banking covenants. It was also the result of increasingly difficult conditions in the dairy sector.
“The dairy markets have weakened significantly and the level of competition in both liquid and cheese sectors has brought intense pressure on price and margins,” Grantchester said.
Although the company¹s core business continued to face challenges, its bank, HSBC, remained supportive, Grantchester said. He acknowledged that a late price announcement was not satisfactory but claimed it was a consequence of having to manage a complex mix of factors.
The news follows an earlier price cut of 1.1ppl in February.