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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.}

31/08/22

1ppl milk price increase for OMSCO Organic milk supplies – from 1st October

This increase producers liquid standard litre price to 50ppl including all bonuses and based on a flat profile. Meanwhile according to AHDB GB Organic milk output is coming in at 17.3% below that recorded in 2021 and the deficit is increasing on a weekly basis.

31/08/22

Freshways go green

Freshways have decided to remove the coloured dye from its plastic milk carton caps which will result in more than 300 tonnes of plastic qualifying to be recycled into food grade plastic.

24/08/22

1ppl milk price rise for suppliers to Belton Farm (cheese) is the first October 1st price rise

Belton farm producers will receive a manufacturing standard litre price of 48.55ppl from 1st October and based on a liquid standard litre 47.8ppl. This is the first UK processor October 1st price announcement.

24/08/22

2ppl milk price increase for suppliers to Paynes Dairies from 1st September.

Paynes have added the additional money to their butterfat payment schedule as opposed to the base price with the current 1.25p paid per 1% of butterfat increased to 1.75p per 1% The resulting 1st September liquid standard litre price is 48ppl

24/08/22

2.2ppl milk price increase for M&S Muller Suppliers from August 1st

This increases producers liquid standard litre price to 48.47ppl

24/08/22

1ppl increase for Tesco aligned producers from 1st September

There are no surprises this increase given that Tesco appear to be now mirroring the Muller direct price. Consequently the TSDG Muller liquid standard litre price from the 1st September is 47ppl. In terms of the Tesco cost of production model the cost has moved down to 42.59ppl

24/08/22

Sainsburys stand on at 47ppl from 1st September

Note the Sainsburys cost of production model for September is 42.48ppl

12/08/22

Some producers milk price is at 12 o’clock

It’s time for Ian to put his brave pants on. Dairy futures are trending down as are wholesale markets particularly for SMP & WMP. GDT results (see below) are setting the tone and with 9 out of the last 10 auctions recording average price falls with the average all products price falling below US $4,000. A value not seen since last year. Note the next GDT is on Tuesday 16th.

12/08/22

2ppl milk price increase for suppliers to Wells Farm Dairy (Liquid) – from 1st September

This increases producers liquid standard litre price to just over 48ppl

12/08/22

1ppl milk price increase for suppliers to Meadow Foods – from 1st September

This increases producers liquid standard litre price to 47ppl and based on a manufacturing standard litre to 47.63ppl

12/08/22

1ppl milk price increase for suppliers to Pattemores (Liquid) – from 1st September

This increases producers liquid standard litre price to 47.5ppl and based on a manufacturing standard litre 48.77ppl

12/08/22

Only one fixed price deal has proved to be a bad and outcome for some disastrous

Back on the 12th July this bulletin requested details of fixed price contracts with a bad outcome. The only fixed price deal which prompted a response and has clearly resulted in a very bad outcome is the 1 year one offered by Yew Tree Dairy at 29ppl based on a liquid standard litre which started on the 1st January 2022 and is backed off by Yew Tree to a Dutch buyer.