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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.}

03/01/23

Barbers (cheese) to stand on for February at 50.02ppl

Barbers join Saputo/DCD and First Milk to hold their farmgate milk price until 1st March all each has stood on for different reasons. This maintains Barbers farmers manufacturing standard litre price at 50.02ppl and based on a liquid standard litre at 48.33ppl for a fourth consecutive month. Barbers B price, calculated directly from the AMPE price is paid on all milk above 105% of the agreed base milk volume and for December deliveries falls to a sobering 37.

30/12/22

2ppl milk price reduction for suppliers to Glanbia cheese – from 1st February

This reduction results in a manufacturing standard litre price of 47.25ppl and based on a liquid standard litre to approximately 45.57ppl

30/12/22

1.85ppl milk price cut for suppliers to Dairy Partners (Welsh Mozzarella) – from 1st January

This is a very short notice drop and reduces producers manufacturing standard litre price to 47ppl

30/12/22

1.5ppl milk price reduction for members of South Caernarfon Creameries Co-op from 1st February

This reduction results in a manufacturing standard litre price of 47ppl and based on a liquid standard litre 45.39ppl

30/12/22

Saputo/DCD stand on for February at 49.5ppl due to the floor price

Saputo (AKA Dairy Crest Davidstow) maintain their February farmgate milk price at 49.5ppl based on a manufacturing standard litre which on a liquid standard litre is 47.73ppl. This stand on is as a result of the 49.5ppl floor price declared in late October which runs until March 1st.

30/12/22

The Market

There is little point detailing the UK and Global market fundamentals. In summary they are negative. In the UK one could argue that milk price movements tend to be focused on what Arla announce. However irrespective of what Arla announce for February and beyond come the 1st March and the two months following farmgate milk prices can realistically be described as either a dam building up pressure ready to burst or a pressure cooker about to blow unless a miracle occurs via Mother Nature.

30/12/22

1ppl milk price reduction for Muller producers – from 1st February 2023

This reduction results in a liquid standard litre price of 47ppl which includes the 1ppl Muller Advantage Premium

30/12/22

1ppl milk price reduction for suppliers to Yew Tree Dairy (AKA Woodcocks) – from 1st February

This reduction results in a liquid standard litre price of 47ppl

29/12/22

1.09ppl nett price cut for Arla members – from January 1st

Whilst this is unwelcome news it’s a better result than most anticipated and will undoubtably temper the enthusiasm of other buyers currently planning to drop their farmgate milk prices by 3ppl (or more) from 1st February. This reduction applies to both Arla Organic and Conventional and is split into 1 Euro Cent (0.86ppl) price cut plus 0.23ppl currency adjustment.

23/12/22

First Milk to hold its member milk price until 1st March.

For sure First Milk have stood true to their word on milk pricing. Back in Summer First Milk were off the pace when Milk Prices were rising at which time CEO Shelagh Hancock stated they were not prepared to pay in advance of recovering increases from customers but this would mean when prices top out First Milk would hold for at least a month longer. The 1st February will inevitably see a host of Milk Price movements but First Milk have declared their hand early and confirmed prices will be held for February.

22/12/22

Muller announce two tier pricing change to add stability to its 1300 direct farmers milk pricing

Muller have today announced it will operate a 2 tier pricing mechanism for farmgate milk pricing from April 1st (A and B pricing). The concept has been in planning with the Muller Milk Group farmer representatives for several months and given the current near collapse in world commodity prices coupled with increased farm milk output Muller realise this contract change is needed asap.

22/12/22

The market – but its Christmas

Yes, milk prices at Christmas are extremely volatile and this year is no different with spot prices going as low as 20ppl where as “normally” its 40 to 42ppl. Cream has also taken another dive below £2.00 to £1.90kg tops The StoneXMilkprices.com total net UKMFE return to producers (allowing for haulage and processor margin) has almost stabilised according to www.