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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.}

23/06/22

45p 1st July price and the Aspiration to pay 50p by 1st September by Freshways

Back in early May Freshways announced a 1st July minimum farmgate milk price of 44ppl and a target of 45ppl. The 45ppl is now confirmed and clearly from the emails Ian has received several Freshways suppliers feel short changed given virtually all liquid processors are paying between 46 to 47ppl from July 1st with Arla yet to declare. Freshways have now announced a 1st September target of 50ppl.

21/06/22

GDT Auction average down 1.3%

Today’s auction saw the average price reduce 1.3% to average US $4600 tonne with the main casualty cheddar down a whopping 9.0%. There were 149 participating bidders with 103 successful who traded 20,760 tonnes Notable movements were Butter up 2.4% to average $6213 SMP up 1.0% to average $4276 WMP down 0.6% to average $4125 Cheddar down 9.

10/06/22

46ppl July Milk Price announcement by Tesco

The two retail giants have announced within hours of each other a 46ppl July farmgate price which many will suspect that both are following the Muller direct price.

10/06/22

46ppl July Milk Price announcement by Sainsburys

Sainsburys have announced a 46ppl milk price from the 1st July which coincidently matches the Muller direct milk price. The price will be reviewed by Sainsburys monthly. Inevitably all eyes now turn to Tesco who will be next to move.

10/06/22

3ppl Milk Price increase for suppliers to Pattemores (liquid) – From 1st July

This increases producers liquid standard litre price to 45.25ppl and based on a manufacturing standard litre to 46.52pp.

10/06/22

The Co-op (Muller) makes it a trio of retail giants in the firing line

Within minutes of yesterdays Tesco and Sainsburys July farmgate milk price comments, came responses from Co-op aligned producers mirroring the other two. The July 1st Co-op (CTRG) farmgate milk price is only 43.35ppl. It’s a basket price calculation as follows: Muller Direct price 46p Tesco aligned price 42.34p Sainsbury aligned price 41.7p Co-op aligned price 43.

08/06/22

1.5% rise in GDT average is the first in 3 months!!

Yesterdays fortnightly GDT dairy auction results saw average prices increase by 1.5% to average US $4656 tonne, the first increase for 3 months. Encouragingly the number of active participating bidders increased again to 163 with the number of successful winning bidders increasing again to 111 for the reduced 21,435 tonnes sold. Notable movements were: Butter up 5.

08/06/22

4ppl milk price increase for suppliers to Pensworth Dairy (Braeforge) – from 1st July

This increases producers standard liquid litre price to 46ppl including the 1ppl Pensworth herd health scheme premium.

08/06/22

3.5ppl milk price increase for suppliers to Crediton Dairy (liquid) from 14th July

This increases producers liquid standard litre price to 46ppl.

08/06/22

3.8ppl Milk price rise for Joseph Heler suppliers – from 1st July

08/06/22

1.4ppl increase for First Milk members – from 1st July

First Milk have announced a two-stage milk price increase with a 1.4ppl July 1st increase taking their manufacturing standard litre price to only 43.45ppl in a month when its peers are all paying North of 46ppl up to 47ppl from 1st July. Regrettably this price leaves First Milk members at the bottom of the GB cheese processing milk price league for July and as one commented to Ian this morning “I can’t help but feel like the pour relation yet again.

08/06/22

Some Tesco farmers have had enough

For almost 15 years aligned farmers have jumped the various hurdles Tesco and its consultants Promar, have put in front of them but for numerous Tesco farmers enough is enough with many now “kicking off including the quiet ones”. The final straw for many, judging by Ians inbox, coincided with Mullers 1st July standard liquid litre price announcement of 46ppl.