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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.}

02/09/22

1ppl price increase for South Caernarfon Creameries (Cheese) members from 1st October

This increases producers manufacturing standard litre to 49ppl and based on a liquid standard litre to 47.31ppl

02/09/22

1ppl price increase for Glanbia (Cheese) suppliers from 1st October

This increases producers manufacturing standard litre price to 49.25ppl

02/09/22

0.75ppl price increase for First Milk members – from 1st October

This increases producers manufacturing standard litre price to 49.39ppl (including the member premium)

02/09/22

Freshways to stand on at 50ppl for October

Freshways have confirmed their 50ppl liquid standard litre price will apply to both September and October deliveries.

02/09/22

Barbers (cheese) to stand on for a 3rd consecutive month

This maintains producers manufacturing standard litre price at 49.42ppl and based on a liquid standard litre at 47.73ppl. Note due to 3.43ppl reduction in the August AMPE (see table at the top of the bulletin) Barbers overbase litre price has dropped below 50ppl for the first time in six months.

02/09/22

0.85ppl (1 euro cent) supplementary payment to Arla members

Arla is to make an additional 1 eurocent (0.85ppl) half year supplementary payment to its farmer owners across Europe. This announcement follows a healthy set of 2022 half year financials with Arla passing back extra money to its members. In the announcement Arla major on inflationary costs at farm and processor level with on farm costs +51% since January 2021 in particular feed +71% as well as reminding all that the lag in farmers receiving price increases is hitting milk volumes.

02/09/22

AHDB V PTF and a £200 tonne difference conundrum

Earlier today Ian was pointed in the direction of a whopping £200 tonne difference between the traded price of Mild Cheddar quoted by the two industry analysts for August 2022. The monthly prices over recent months have seen AHDB regularly lower than PTF but for August that gap has unexplainably widened from £50 tonne to a whopping £200 tonne. May June July August PTF 4700 4790 4900 4900 AHDB 4650 4740 4740 4700 Since 2015 prices have never dropped in Summer indeed in 2016, 2017 and 2018 they increased.

31/08/22

1ppl price rise for Muller Direct Suppliers – from 1st October

This increases producers liquid standard litre price to 48ppl. Which includes the 1ppl Muller Advantage premium.

31/08/22

Arla member price is stand on for September

Arlas decision to hold its member price for September at 50.35ppl (manufacturing) and 48.42ppl liquid will come as no surprise to anyone unless they are completely out of touch with the market realities. The Arla member Tesco price remains at 49.84ppl with Morrisons extremely close at 49.81ppl Arlas Organic milk price will also stand on at 56.01ppl (manufa

31/08/22

Saputo (AKA Dairy Crest) to hold its September milk price for October.

This maintains producers manufacturing standard litre price of 49.5ppl and based on a liquid standard litre 47.72ppl.

31/08/22

Middle ground liquid processors under pressure as 1ppl farmgate price drop is announced

North Lakes Foods Ltd have informed their suppliers that from 1st October their farmgate milk price will reduce from 50ppl to 49ppl which includes the bonus payment of 1ppl which the majority of farmers receive. In October 2021 North Lakes liquid standard litre price was 29ppl (28ppl + 1ppl bonus) and in September 2022 (49ppl + 1ppl bonus). In their business update to producers Freshways have stated their intention is to hold their September 50ppl liquid standard litre price for October.

31/08/22

GB July milk output hits a 5 year low

July milk output totalled 1.025 billion litres which is a 5 year low according to AHDB Dairy analysts. Let’s hope milk output continues to remain relatively low and tight.