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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.}

23/12/19

GDT 5.1% price drop is a bombshell

Last weeks GDT Auction saw the average price drop by a whopping 5.1% to US $3302 tonne for the 35,748 tonnes on offer. The result was both unwelcome, unexpected and unexplained. Notable movers were: WMP down 6.7% to average US $3099 tonne SMP down 6.3% to average US $2867 tonne Butter down 2.4% to average US $3886 tonne Cheddar up 1.7% to average US $3869

23/12/19

0.7ppl Milk Price reduction for Saputo (AKA Dairy Crest) Davidstowe suppliers from 1st February

This reduction ends an impressive 12 month hold at a 29.9ppl manufacturing standard litre price. From 1st of February 2020 the Saputo/Dairy Crest manufacturing standard litre will be 29.2ppl and based on a liquid standard litre of 28.12ppl.

23/12/19

Arla Stand on price hold continues and has now completed a 13 month run

Arla members conventional milk price will hold for January 2020 at 30.04ppl based on a manufacturing standard litre and 28.89ppl on a liquid standard litre. The last Arla member price reduction was 1.33ppl from 1st of January 2019 which means this is a very impressive 2019 calendar year hold and still running. Note there have been a few tiny currency smoothing changes which during that 13 month period have resulted 30.

23/12/19

Lactalis (AKA Caledonia & The Fresh Milk Company) to stand on until 1st of April 2020

Lactalis will hold its supplier milk price until 1st April 2020 at a minimum floor at 27.61ppl based on a manufacturing standard litre and 26.5ppl based on a liquid standard litre.

17/12/19

Barbers (Cheese) to stand on/hold its supplier Milk Price for January

This maintains Barbers standard manufacturing litre price at 27.79ppl and based on a liquid standard litre at 26.8ppl.

17/12/19

Wyke Farms (Cheese) to Stand on/hold its producer price for January

This maintains a manufacturing standard litre price of 26.91ppl and a liquid standard litre price of 26ppl

17/12/19

Nampak business on life support should send shivers down industry spines

More evidence of serious fresh milk industry supply chain stress. Nampak is a significant UK milk bottle manufacturing business whose accounts which were recently published showing significant losses of £2.7 million in 2018 with an eye watering pension fund liability of almost £28 million. Excluding Nampak’s significant restructuring costs the years efforts leave a small 2018 profit of only £124,000 (£3.

17/12/19

Nampak rumoured to have sold out to so called “Vulture Fund” Greybull

As this edition went to the send box there are very strong rumours that Nampak have sold their UK bottle blowing factories to Greybull who are badged as rescuers of distressed businesses with a view to turning them around. This sale should send further shivers down the spine of all involved in the UK liquid business including responsible retailers and those in the food service.

17/12/19

No Christmas cheer for 72 Tomlinson’s and Sainsbury’s farmers

PWC the administrators for the collapsed Tomlinson’s Dairies Limited have issued their proposals and its very depressing reading. The key points are that the 72 farmers (Tomlinson’s directs plus Sainsbury’s group) are unlikely to receive any payment from the administration. HSBC are owed £15.6 million and this is unlikely to be fully repaid with finance Wales Investments highly likely to join the farmers for a nil payout on the £1.

02/12/19

Wensleydale (Cheese) 0.6ppl reduction from 1st December

This results in a manufacturing standard litre price of 27.75ppl and a liquid standard lire price of 26.8ppl.

02/12/19

Dale Farms Northern Ireland 0.25ppl reduction in base price from 1st October

This results in a standard liquid litre price of 25.59ppl.

02/12/19

Belton Farm (Cheese) to stand on/hold its producer price until at least 1st February

This results in a manufacturing standard litre price of 27ppl and a liquid standard price of 26.25ppl.