Our relationship with farmers

Working closely with our farming suppliers

Around 73% of our milk comes from our direct supplying dairy farmers and we are actively working to increase this to 85%. A strong relationship with our farmers is fundamental to our business as we work together to meet future industry challenges, improve efficiency and capture new market opportunities.

We work very closely with Dairy Crest Direct (DCD), an independent organisation representing our suppliers, who are involved at all levels of our business and regularly meet with our management team.

Our aim is to continue to develop and enhance this relationship with our suppliers, exploring new ways of working together. By taking a partnership approach with our farmer suppliers, we are building a shared strategy to deliver sustainability and drive efficiency throughout the supply chain, for the benefit of all parties.

We have a number of initiatives in place:

Milk Supply Contracts

Working with our suppliers, we have developed a range of contract options for our farmers to take account of different business models and farming systems. We have responded to supplier requests for greater flexibility and choice whilst recognising the need for simplicity and stability. This year's launch of an innovative contract aligned to our doorstep delivery service, ‘milk&more', has provided a two-year fixed price option to liquid suppliers seeking additional price security.

Adding Value

We have led the industry with the development of added value milk pools. Two of these schemes have celebrated their tenth anniversary in the past year. The development of existing pools continues as we work with supplier representatives to explore how to utilise new technology, further improve efficiency and demonstrate best practice in agriculture.

Together with our retail customers, we are working with industry experts on a series of on-farm initiatives focusing on animal health and welfare and the protection of the environment. Our aim is to maintain the momentum with our existing partnerships, therefore generating value and confidence for the future, and to establish further alignment of suppliers to customers, products or services.

Supporting suppliers

We offer a wide range of business and operational support services to its suppliers, both centrally and through local field based managers. We deliver additional benefits and on-farm advice through the funding of the unique and independent White Gold Service. This provides all suppliers with the opportunity to access benefits and individual advice on how to maintain farm assured status and meet legislative requirements efficiently. This includes information about on-farm environmental initiatives as we work together to explore how we can reduce the environmental impact of dairy farming and our milk collection operation.

To deliver further support to suppliers in meeting efficiency targets and environmental challenges, agri assist - the joint venture agreement with DCD launched in January 2010 - has developed a specialist on-line carbon measurement tool for suppliers. This new business will specifically focus on developing environmental initiatives and farm efficiencies, as well as identifying opportunities for revenue generation, to ensure future sustainability.

agri assist was a first for the dairy industry, bringing together a farmer group and a plc in a relationship outside of the traditional milk operation and demonstrating a true partnership approach.