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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.}

31/01/23

1ppl milk price reduction for suppliers to Co-op (CDG) – from 1st February

This is an aligned tracker price which tracks the three producer prices paid to Muller Direct, Muller Sainsburys and Muller Tesco. The reduction results in a liquid standard litre price of 46.83ppl

31/01/23

1.12ppl milk price reduction for Arla Directs - from 1st February

This reduction results in a liquid standard litre price of 46.63ppl and based on a manufacturing standard litre 48.58ppl

31/01/23

3ppl milk price reduction for Muller Direct producers – from 1st March 2023

This reduction results in a liquid standard litre price of 44ppl including the 1ppl Muller Advantage Premium.

31/01/23

3ppl milk price reduction for Saputo (AKA Dairy Crest Davidstow) – from 1st March 2023

This reduction results in a manufacturing standard litre price of 46.5ppl and based on a liquid standard litre 44.84ppl

30/01/23

3 euro cents/kg (2.65ppl) milk price reduction for Arla organic & conventional members – from 1st February

The Arla press release reconfirms that the decrease is down to a combination of higher milk output and reduced consumer demand following higher dairy product costs. This price reduction and market movements also applies to organic demand. No surprises at the Arla conclusion “The Outlook is negative” Conventional Organic December Milk Price PPL PPL Manufacturing 48.

27/01/23

4ppl milk price reduction for Dairy Partners (cheese) suppliers – from 1st February

This reduces producers manufacturing standard litre price to 43ppl and follows a 1.85ppl January 1st reduction.

27/01/23

AMPE falls to 35.09ppl for January

The AHDB AMPE value has fallen to 35.09ppl this month which is a fall of 12.22ppl (26%) in 12 months. AMPE is the Actual Milk Price Equivalent and indicates the processing at the gate value of milk turned into butter and SMP.

26/01/23

10ppl milk price cut for Parkham Farms suppliers

Parkham Farms (cheese) have informed producers of both a 3ppl price reduction from 1st February followed by a 7ppl reduction from 1st March which results in a 1st March manufacturing standard litre price of 40.9ppl for Tesco aligned farmers and 38.9ppl for non Tesco farmers. The background story could apply to any cheese maker – surplus cheese in stock made with 50p milk and prices weakening daily and with that the real value of that cheese is falling.

25/01/23

Cream halves in value with talk of flush excess milk at under 20ppl

Bulk Cream values continue to head South at an alarming rate and values are now at 50% of their peak compared to only 2 months ago in November when they topped at £2.80kg with this week trades at £1.35 to £1.40kg. That’s a drop in cream value of 9ppl on every litre processed. The next GDT Auction is not until 7th February but with the last sale results converting to UK milk price of 30ppl and EU dairy prices lower than in the UK, its looking bleak.

25/01/23

Futures trades hit a 69 week low

www.milkprices.com have reported that the StoneXMilkprices.com UKMFE forward curve has hit a 69 week low with February to September 2023 now showing a net return to a producer from butter/powder values of 28-29ppl and still weakening. The StoneXMilkprices.com UKMFE Nett return to a producer stood at 34.85ppl on 10th January. By the 23rd that figure has reduced to 30.

25/01/23

2ppl milk price reduction for suppliers to Grahams Dairies – from 1st February

In a very open and frank letter to its farmer suppliers MD Robert Graham points to the collapse of prices in the first 3 weeks of this month with “prices falling daily”. Whilst the 2p reduction in unwelcome Grahams say “it is absolutely necessary that we reduce the price the business pays … and then goes on to point out the blindingly obvious that further decreases in March, April and May are on the cards concluding with if the flush is big then pricing (Not necessarily Grahams) will start with a 2 (below 30ppl).

25/01/23

It’s not as simple as keep putting prices up and consumers will pay

That’s the statement from Robert Graham in his letter to his farmers who highlights an (unnamed retailer) Grahams trade with where a 15p increase in a dairy product supplied by Grahams resulted in a whopping 70% decrease in sales. Unfortunately, milk supply and demand is a perfect storm. Farmers have ramped up production whilst consumers have reacted to high dairy prices.