Feb 5 - There was more bad news today for the UK's milk producers as Dairy Farmers of Britain (DFB) announced it would be cutting its purchase price by 1.1 pence per litre with immediate effect.
The move prompted an instant response from the National Farmers’ Union which said the latest reduction meant the company had sliced 3.1ppl off its prices in a little over three months.
The NFU accused DFB of taking the industry by surprise with the “hastily imposed” measure and urged it to be transparent with its members.
NFU dairy board Chairman Gwyn Jones said: “Our members are telling us that they are deeply concerned by this latest price cut, which was unexpected and which has been hastily imposed. DFB must be very clear and open with its members about the reasons behind these cuts and reassure farmers about the future strategy of the company.”
A DFB spokesman said: “This is not a decision taken lightly nor was it hastily imposed. Milk prices have been falling in recent months – and this announcement reflects what is happening in the dairy market. I think this is also reflected in the fact that the vast majority of other dairy companies have also dropped their prices.
“When we made our previous price announcement in November 2008, we said at the time that if the market moved again we would have to reflect that in the price we paid producers.
Formed seven years ago, DFB reported a turnover of GBP 562 million in 2008. The company said it manages around 1.5 billion litres of raw milk a year. It has a membership of 2,300 farmers,
DFB’s move follows that by First Milk, which announced on Feb 2 an immediate reduction of 0.75ppl in the core milk price paid to its farmers.