Call Us

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.}

09/12/22

THE REST

It appears some processors have already decided on 1st January price cuts but are holding back informing its producers until closer to the date. In addition, the 1st February rumoured price cuts are set to ruin any festive celebrations once confirmed.

09/12/22

GDT up 0.6%

Tuesdays GDT Auction resulted in the average price increasing slightly by 0.6% to US $3610 tonne. The quantity sold was up 590 tonnes to 29,570 and the number of participating bidders totalled 158 (142 three weeks ago) with the successful winning bidders amounting to 118 (111 three weeks ago) On a global scale whilst this is the second consecutive GDT rise it is against the expected downward direction of flow which International Dairy analysts believe is set to continue due to global oversupply coupled with reduced demand.

09/12/22

Notable movements were

Cheddar up 1.8 % to average US $4826 tonne SMP up 1.7% to average US $ 3102 tonne WMP up 0.1% to average US $3400 tonne. Butter down 1.9% to average US $4725 tonne

02/12/22

Average farmgate milk price tops 50p in October & AMPE crashes for November

Yes, the October DEFRA provisional average paid out farmgate milk price currently stands at 50.44ppl. Meanwhile AMPE has taken a big hit down 6.58p (13%) in a month from 51.27p in October to 44.69p in November.

02/12/22

1.38ppl milk price increase for Arla Directs – from 1st December

This results in a liquid standard litre price of 47.76ppl

02/12/22

0.5ppl milk price increase for Sainsburys aligned suppliers – from 1st December

This increases producers standard liquid litre price to 47.5ppl (Muller) and 47.38ppl (Arla) In making the announcement Sainsburys have flagged up the intention (likelihood) that by Spring 2023 producers will return to the COP model which currently stands at 43.88ppl.

02/12/22

0.16ppl milk price increase for CTDG (Co-op) aligned producers – from 1st December

This is as a result of the 0.5ppl increase from Sainsburys who are part of the Co-ops basket pricing of three milk buyers. This results in a liquid standard litre price of 47.83ppl.

02/12/22

3ppl milk price drop for Freshways suppliers – from January 1st

This reduces suppliers liquid standard litre price to 47ppl and in its letter to producers it states a number of reasons for the drop including increase in volumes and a significant fall in cream income.

02/12/22

1.5ppl milk price drop for South Caernarfon Creameries suppliers – from 1st January

This reduces suppliers manufacturing standard litre price to 48.5ppl and based on a liquid standard litre to 46.83ppl

02/12/22

Futures trades continue to head South

The Stone X Milkprices.com Net UKMFE return to producers (allowing for haulage and processor margin) continues to head South with the latest posting from www.milkprices.com headlined as “another dreadful week.” This was with reference to the last week in November which recorded a total net return to a producer of only 33.28ppl a drop of 1.52ppl in a week. This comes only 9 weeks after the record high of 49.

02/12/22

Kite Consulting now part of AB Agri Group

John Allens baby Kite Consultancy and Advance Sourcing has been acquired by AB Agri which includes familiar names like Trident Feeds, KW Feeds, Frontier, ABN plus many others. Kite will continue to operate as a standalone basis providing independent advice to GB Dairy Farmers. It will be interesting to see how Kites Advance Sourcing and its feed recommendations/sourcing can maintain its independency given its new owners pedigree in that area.

25/11/22

Arla Stand on milk price until 2023

Arla will hold its member milk price until 1st January for both Conventional and Organic. Conventional Organic December Milk Price PPL PPL Manufacturing 52.24 57.02 Liquid 50.24 54.85 In todays press release Arla Foods AMBA board director Authur Fearnall commented “The outlook is negative, driven by the continued decline in commodity prices.