0.5ppl milk price reduction for suppliers to Saputo (AKA Dairy Crest Davidstow) from 1st March

Whilst this price reduction is unwelcome it has to be put into context as to where it sits and its history.

Firstly, DCD and Saputo have agreed the new 1st March 2020 standard manufacturing litre price of 28.7ppl is a minimum four-month floor price until 1st July 2020. This is a welcome move and provides stability during the Spring flush in terms of it can only be this price or better. Note based on a standard liquid litre the minimum floor price will be 27.62ppl.

The Saputo price was held at 29.9ppl for an impressive 12-month spell and some would claim a reduction is overdue and somewhat inevitable. One cheese processor recently commented to Ian that “The Saputo and Arla farmgate prices have defied gravity”. It’s still up there with the best and in a champions league placing with everyone now way behind Arla whose performance currently matches Liverpool.