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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.}

24/04/19

Muller set to reduce its product numbers by up to 40%

As part of its £100m cost cutting exercise, AKA project Darwin, Muller has announced that its current range of 835 UK milk and cream products from its six dairy processing facilities is set to be cut to around 500 In addition some customers who take small uneconomical deliveries will be given notice by Muller and delisted. According to an article in The Grocer Magazine by Kevin White Muller has also stood back from tendering for several supply contracts.

24/04/19

Notable prices

Butter up 3.5% to average US $6,126 tonne Cheddar up 1.4% to average US $4,319 tonne SMP up 0.2% to average US $2,462 tonne WMP down 0.7% to average US $3,269 tonne

24/04/19

GDT Auction stands firm with a slight uplift

Last weeks GDT Auction produced a small average all products price rise of 0.5% to average US $3447 tonne. The result was as anticipated with previous auction gains maintained. The slight upward movement is the 10th consecutive auction rise and the average stands at almost a 2 year high.

24/04/19

0.45ppl milk price reduction for Muller Co-operative Group suppliers – From 1st May

This results in a standard liquid litre price of 29.56ppl.

24/04/19

Wyke Farms (cheese) to stand on with its May milk price at 28ppl – PRODUCER NOTIFIED

Wykes standard liquid litre price will remain at 28ppl and based on a standard manufacturing litre 28.99ppl.

24/04/19

Challenging issues for Arla One Contract sign up in mainland Europe but no issues raised with our NFU’s

As we rapidly approach the 30th April Arla one contract sign up deadline the news from Mainland Europe is some farmers and their representative organisations are unhappy with the new One Contract terms. The Danish dairy farmers Union LDM have appointed two lawyers who have studied Arla's One contract and terms, and both lawyers have issues which Arla will have to address or are addressing.

24/04/19

Arla members stand on with its May conventional price at 30.23ppl

This is Arlas 4th consecutive member milk price hold keeping the standard liquid litre price at 29.06ppl and based on a manufacturing standard litre 30.23ppl. This is a welcome if not remarkable achievement by Arla and certainly puts more pressure on other processors who are finding current prices extremely challenging. During the past week spot milk has been regularly trading between 13 to 15ppl and the signs are pointing towards further weakening as milk production continues to increase.

05/04/19

Dairy Crest 1 Billion pound sale is approved

The sale of the remaining Dairy Crest business to Canadian Saputo has been approved at 6.20 per share valuing the business at almost £1 Billion. The new owners will take charge on April 15th

05/04/19

Milk Deliveries update

According to AHDB Dairy GB milk deliveries for week ending 23rd March were up 4.3% compared to the same week last year equivalent to an additional 1.5million litres day and heading for the most milk produced in 32 years and towards 15 billion litres. To add to the problem is the fact milk production in Southern Ireland is also at record levels. January to February 2019 production is up 3.

05/04/19

First Milk (cheese) stand on with its May member milk price at 28.68ppl

First Milks decision to hold its April milk price for May results in a standard manufacturing litre milk price of 28.68ppl (including the 0.25ppl member premium paid in April 2020) and based on a standard liquid litre 27.75ppl.

05/04/19

Barbers (cheese) to stand on with its May milk price at 29.13ppl

This is the fourth consecutive month Barbers have held producer prices at this level which is 29.13ppl based on a standard manufacturing litre and 28.09ppl based on a standard liquid litre.

05/04/19

Dairy Crest (cheese) to stand on with its May milk price at 29.9ppl

This is an impressive move by Dairy Crest who have held their producer milk price at 29.9ppl (based on a standard manufacturing litre) for four consecutive months. Based on a standard liquid litre the price remains at 28.82ppl.