Dairy Crest is cutting its Davidstow milk price by 0.75 pence per litre from 1 July.
The move comes after the company slashed its standard milk price by 2ppl in April, sparking a wave of farmgate milk price cuts among UK processors.
Dairy Crest said it was reducing its Davidstow price by less than other cheese processors and would be making the cut later, reflecting the strength of its cheese business and its Cathedral City brand. By comparison, First Milk announced a 1.25ppl cut to its cheese pool price on 10 May, while Milk Link announced a 1.5ppl reduction from 1 June.
Additionally, Dairy Crest said it was looking to introduce a volume incentive scheme for farmers to ensure milk production kept up with demand for its cheeses.
“Cathedral City is growing strongly and we need more milk,” said group milk procurement director Mike Sheldon. “We know that a reduction in price doesn’t help with this, but we have to remain competitive.”
Sheldon claimed the volume incentive scheme showed Dairy Crest wanted to maintain “the virtuous circle” of local farms producing top-quality milk for the Davidstow creamery.
“We are extremely proud to be a British company buying British milk from high-quality, professional dairy farms and will continue to drive our business forward,” he added.