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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

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.

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