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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.}

05/07/22

1.5ppl milk price increase for suppliers to Crediton Dairy (Liquid) – from 1st August

This increases producers liquid standard litre price to 47.5ppl

04/07/22

1ppl milk price increase for Sainsburys SDDG aligned – from 1st August- PRODUCER NOTIFIED

This leap frogs the Muller Direct price for August (which surprisingly & disappointingly didn’t go up from its July 1st 46ppl) to a liquid standard litre price of 47ppl. On recent performance it appears Tesco are following Sainsburys lead on the aligned followed by the Co-op who will always be the back marker.

01/07/22

All time records for AMPE & MCVE

The June AMPE (56.43ppl) and MCVE (54.09ppl) are both all time records. During the month Butter & SMP increased to help bolster AMPE and Mild Cheddar values increased to help bolster MCVE. AMPE (Actual Milk Price Equivalent) is an indicator of the factory gate value of a litre of milk used for butter and skimmed milk powder MCVE (Milk for Cheese Value Equivalent) is an indicator of the factory gate value of a litre of milk used for mild Cheddar and whey powder/butter.

01/07/22

2.57ppl milk price increase for Barbers (cheese) suppliers – from 1st August

This increase takes producers manufacturing standard litre price to 49.42ppl and based on a liquid standard litre to 47.73ppl. All June B/ excess litres delivered over and above the farms base volume will be paid at 54.43ppl (AMPE @ 56.43ppl less 2ppl).

01/07/22

3.281ppl milk price increase for Marks and Spencers aligned suppliers – from 1st July

This increases producers liquid standard litre price to 46.27ppl and is as a result of M&S agreeing to fast forward the COP reference dates in a bid to come closer to the point at which their farmers incur increased production costs.

01/07/22

Freshways confirm 50ppl standard litre price from 1st September

On the 24th June Freshways informed its producers that its previous reference to its aspiration to pay 50ppl from 1st September (see our story posted on our website on 23rd June above) is now confirmed as 50ppl from 1st September.

01/07/22

“How long can this keep going on”

As the Hillbilly Brooks and Dunn song Lyrics go How long can this keep going on? During June wholesale Dairy prices continued to rise. Butter, SMP, Cream, Mild Cheddar all increased and as above these increases translated to record AMPE & MCVE prices. According to AHDB on a weekly basis GB deliveries are down 3.4% compared to the same week in 2021 (11th June) and cheddar stocks are almost non-existent which is extremely unusual immediately after the flush.

01/07/22

Tesco still taking milk from a former aligned producer

A Tesco producer who fell into the bottom 5% of producers and was ousted from a Tesco aligned pool in early 2021 has provided evidence to Ian that his milk is still going to Tesco every day. He has been told its down to logistics but it makes a mockery of the system when Tesco kick you off but still take the milk from the farm and put it into the same tanker and silo as the other TSDG farmers milk.

01/07/22

2ppl milk price increase for Waitrose aligned farmers - from 1st July

This increases producers liquid standard litre price to 46.2ppl

01/07/22

Saputo (Dairy Crest Davidstow) fined a whopping £1.52 million – The Queen is not amused

Saputo have been hit with an eyewatering £1.52 million fine for environmental pollution breaches between 2016 and 2021 following a successful Environment Agency prosecution. The all-time record fine handed down in Truro Court a few days ago came after Saputo pleaded guilty to 21 out of 27 charges. One of the main issues was the discharging of effluent into the local river resulting in thousands of fish dying.

01/07/22

Dairy products are better value per kilocalorie than their plant-based alternatives

An initial study by Kite Consulting reveals plant-based shopping baskets have a higher cost per Kcal (kilocalorie) than conventional baskets at the two major supermarkets it looked at. The study found that the cost of a randomly chosen plant-based shopping basket from Tesco was 39% more expensive per Kcal when compared to a comparable basket of conventional products.

01/07/22

Herdsperson Vacancy on 550 cow unit near Shrewsbury

The vacancy has arisen due to an internal promotion to the role of farm manager. The opportunity will be working in a team of five and comes with an attractive package including regular hours and days off, free accommodation and more. For further details email sarah@ipmsltd.co.uk