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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.}

15/02/19

1ppl milk price reduction for suppliers to OMSCO – from 1st March

The price change will affect 250 OMSCO supplying farmers and is a direct reflection on the challenging uncertainties OMSCO face as a no deal Brexit looms closer to reality. In addition members have been notified it is unlikely there will be and 13th payment for the 2018/19 milk year. At the same time the Co-op is also introducing an A & B milk pricing mechanism in a bid to limit the impact of the additional litres they have to handle both in terms of increasing production and in the event OMSCO’s successful dairy product exports come to a sudden halt on 27th March.

15/02/19

1.25ppl milk price reduction for suppliers to Pensworth (liquid) – from 1st March

This result in a standard liquid litre price of 26.35ppl.

11/02/19

GDT bounces up again by a further 4.2%

Tuesdays GDT Auction saw the average all products price up a further 4.2% which is its 4th consecutive rise and follows hot on the heels of rises of 2.2%, 1.7% and 2.8%. This is yet more encouraging news to emphasise the necessity for farmgate milk prices to at least stabilise from March 1st at the latest. In less than two months the average price has now bounced up by 12% from $2727 to average $3057 tonne.

11/02/19

0.5ppl milk price reduction for suppliers to Belton Farm (Cheese) – from 1st February

This results in a standard manufacturing litre price of 28.75ppl and based on a standard liquid litre 28ppl.

31/01/19

DIN CONFERENCE MAY 9-10, 2019

Save the Date This year’s Dairy Industry Newsletter annual dairy conference will be May 9-10 in London, at the Tara Copthorne Hotel as usual. The theme is ‘Will Dairy Supply Continue to Outstrip Demand?’ As the world’s dairy markets become more and more interlinked and world commodity dairy prices become more globalised, supply and demand also becomes more globalised, with events on one side of the world having an impact on the other.

31/01/19

EU Aged SMP is sold

At last the European Union has almost cleared the last of close to 400,000 tonnes of Intervention SMP. This is good news and eliminates a big black cloud which has hung over Europe and the world dairy industry for almost 4 years. The tonnage started to accumulate in the summer of 2015. Its sale will certainly help the current price of fresh SMP.

31/01/19

Crediton Dairy unveil its £12m Expansion

Starting next month Crediton will invest £12 million in its flavoured milk processing facility boosting its processing capacity. Completion is planned for August 2019. Since the Management buyout less than 6 years ago this will take the total Crediton investment will amount to £26 million.

31/01/19

Wyke Farms to double its capacity

Farmhouse cheese makers Wyke have secured planning permission which when complete will almost treble its output from the current 18,000 tonnes to around 50,000 tonnes. The new facility will be named Ivys Dairy after the familys famous grandmother and will be built in stages over 8 years.

31/01/19

UK Milk Futures Equivalent (UK MFE) prices take a battering

The FC store milkprices.com UKMFE forward trades took a battering last week with weaker prices for butter, and SMP plus a further strengthening of sterling against the euro. www.milkprices.com calculate that in the past 4 weeks these combined price movements equate to 1.48ppl drop in milk values and takes the net UK MFE milk price to 27.10ppl

31/01/19

Dairy Crest Direct (Davidstow) to hold its milk price for March

This means that for March deliveries the Dairy Crest standard Manufacturing litre milk price remains at 29.9ppl and based on a standard liquid litre is at 28.82ppl

31/01/19

Unfortunate Market Intelligence comment from AHDB

Within minutes of the Muller price drop announcement came an AHDB Dairy Market weekly update with a headline: “Boost to market value of milk may halt drops in farmgate prices.” The news item pointed to a reversal of “the direction of market trends “ which could put an end to downward pressure on market farmgate prices. Very unfortunate timing by AHDB Dairy Market Intelligence.

31/01/19

What message does Ian think Muller are sending to the Industry

Muller were unavailable for coment today but Ian thinks their message is very simple. “We can’t make money in the UK liquid market having invested a shed load of money. The NFU’s are insisting farmers share the risks and rewards with milk processors. Consequently we have cut the farmer milk price to share the risks and lack of rewards with our farmer suppliers just as the NFU’s are insisting.