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Dairy Industry News and Features

Our Weekly News Bulletin is available by email. To receive it please email info@ipmsltd.co.uk.

^{Note, all standard litre prices are those quoted by www.milkprices.com and are based on the following:

The liquid standard litre 4% bf, 3.3% protein, 30,000/ml Bactoscans, 200,000/ml SCC, 1 million litres a year on EODC but before seasonality, monthly profile payments, balancing, B price additions, capital retentions or annual incentive schemes. The manufacturing standard litre is to exactly the same specification with the exception of 4.2%bf and 3.4% protein.}

^{Remember this bulletin continues to be available free of charge and takes the team at Ian Potter Associates considerable time to produce. The only encouragement to keep producing it is a combination of enthusiasm, tag sales & enquiries from our readers.} ^{All views expressed in this bulletin are those of Ian Potter Associates and a shed load of dairy farmers. It is necessarily short and cannot deal with various issues that arise in any detail. As a result it must not be relied on as giving sufficient advice in any specific case. Every effort has been made to ensure the accuracy of the content but neither Ian Potter Associates nor Lydia Clare personally can accept any liability for any errors or omissions. Professional advice must always be taken before any decision is reached. For our privacy policy please click here.}

07/02/20

0.5ppl Milk Price increase for Meadow Foods Suppliers – from 1st of March

This increase results in a liquid standard litre price of 26ppl and based on a manufacturing standard litre of 26.38ppl (Cheshire/Midlands region) and 26.25ppl (Lake District/Cumbria). It’s now pointing towards any liquid purchaser paying under 26ppl on March 1st as very much under the spot light and off the pace as the gap between the best and worst paying milk buyers rapidly closes.

07/02/20

GDT Price fall attributed to Coronavirus in China

This week’s GDT Auction fell back sharply by 4.7% to average US$3226 tonne. The fall in price was put down to the impact of the quickly developing Coronavirus in China with Dairy trade disrupted and slowing down. WMP prices took a 6.2% battering however some New Zealand analysts had feared the drop in price could have been 10% or more. The best outcome for the world and dairy prices is for the virus to be quickly contained.

07/02/20

Medina and Freshways will no longer be called M & F Dairies

Inside sources have confirmed that the Freshways takeover/merger with Medina will no longer be named M & F Dairies as reported on 5th of November. The full nickname for M & F Dairies as suggested by a couple of middle ground customers will therefore no longer be the source of amusement. In a recent article Kevin White of the Grocer points to almost a branding merger between the two processors with all address references to Freshways Acton HQ.

07/02/20

Freshways appetite for Spot Milk is believed to be a combination of two factors

Reports of Freshways suddenly seeking both 3rd party processing and packing plus relatively large volumes of milk including spot milk has left a few of us puzzled. It is claimed that Freshways have lost significant volumes of milk in South Wales but more importantly there are very strong rumours that the Muller Dairy Crest 5 year Medina deal ending has had the biggest impact.

31/01/20

1ppl (0.5p + 0.5p) milk price increase for Freshway suppliers – from 23rd February PRODUCER NOTIFIED

Freshways join Meadow and hopefully others who have been paying a relegation liquid standard litre price of 25ppl or less and now have to get back amongst the pack or risk losing supplying farmers. This 1ppl increase is not automatic and comes in two parts. 0.5ppl will only be paid to suppliers who remain within a 5% tolerance of their monthly A litre volume – note not B litres.

31/01/20

Arla continues with a 14 month stand on milk price – until 1st March

Its another fantastic result for the European giant and means producers prices for conventional and organic milk will be held at current levels until at least 1st March. The conventional manufacturing standard litre price remains at 30.04ppl and based on a standard liquid litre holds at 28.89ppl. Arla’s member organic milk price also remains unchanged at 40.

31/01/20

Barbers (cheese) stand on for a 5th consecutive month - until 1st April

This maintains Barbers standard manufacturing litre price at 27.79ppl and based on a liquid standard litre at 26.8ppl. Barbers producers excess litres, AKA B price, is confirmed at a healthy 29.43ppl for January suppliers.

31/01/20

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.

31/01/20

Market Update

Spot milk prices are still holding at 27p to 28p with regular reports that Freshways are the main regular buyers of spot milk and are short on volume. A key challenge for liquid processors who are paying a liquid standard litre price at the top end is balancing the books at current cream prices. According to AHD Dairy the January 2019 bulk cream price was £1710 and one year later was down to £1300 representing a 24% fall.

31/01/20

Glanbia (cheese) stand on - hold its price until at least 1st March

This maintains a manufacturing standard litre price at 27ppl and based on a liquid standard litre 26.1ppl.

21/01/20

GDT average up another 1.7%

Hot on the heels of the 7th January 2.8% jump comes todays 1.7% lift to average US $3434 tonne, for 33,050 tonnes sold (33,165 sold 7th January). The number of active bidders continues to rise this time to 191. Butter + 5.5% to average US $4,250 tonne WMP + 2.4% to average US $3,233 tonne SMP + 0.7% to average US $3,036 tonne Cheddar + 0.6% to average US $4,048 tonne All of the above average prices are well over the 17th December 2019 Auction results when prices surprisingly crashed back by 5.

21/01/20

0.5ppl Milk Price reduction for First Milk Members from 1st of February

This takes producers standard manufacturing litre to 27.38ppl and based on a standard liquid litre to 26.5ppl.