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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.}

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.

22/12/22

First Milk to boost Aspatrias output by 40%

First Milk recently opened its upgraded cheese processing facility at Aspatria which results in a 40% increase in its processing capacity which now has the ability to process circa 1 million litres day.

22/12/22

Next news will be Arlas January 1st price

Arlas official announcement of its 1st January price will be on 29th December at 12 noon. Given the expectation that a heap of price announcements will be made before the end of December a bulletin is in the making for Friday 30th however any news will be posted on our www & Facebook pages as soon as possible.

20/12/22

GDT Auction exits 2022 on a downer

Todays final GDT Auction of 2022 produced another disappointing and concerning set of results with all five products on offer recording price drops resulting in a 3.8% average fall compared to the auction held two weeks ago. The quantity sold today was 28,724 tonnes which is 846 tonnes (-3%) less than the 29,570 tonnes sold at the last sale. The number of bidders today was down from 158 to 149 with successful bidders much the same at 117.

09/12/22

1ppl milk price cut for suppliers to Meadow Foods – from January 1st

This reduces producers liquid standard litre price to 47ppl and based on a manufacturing standard litre to 47.625ppl. In the press release Meadow comment “The downward pressure is a result of higher milk production volumes due to a kind autumn and a very positive milk price to feed price ratio which has resulted in record volumes coming off farms”

09/12/22

3ppl milk price cut for suppliers to Pensworth (AKA Braeforge) – from January 1st

This reduces producers liquid standard litre price from 50ppl to 47ppl. Note the 47p includes the 1p paid for participation in the Pensworth Heard Health Scheme.