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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.}

28/03/22

AMPE rockets to 54.48ppl with MCVE 49.95

Both AMPE and MCVE market indicators continue to smash their all-time records with AMPE jumping a whopping 5.62ppl in one month to give a new March value of 54.48ppl (source AHDB Dairy) AMPE is The Actual Milk Price Equivalent and is an indicator of the factory gate value of a litre of milk which goes into Butter and SMP. MCVE is The Milk for Cheese Value Equivalent and is an indicator of the factory gate value of a litre of milk which goes into mild cheddar and whey powder/butter.

28/03/22

Less than 3 days to Register to have your say on how your AHDB Dairy levy is spent

Registration to take part in AHDB’s Shape the Future vote closes at noon on 31 March. Over 2500 dairy farmers have already registered. Don’t leave it to others to determine where your dairy levy will be spent. Registration link below: https://secure.cesvotes.com/V3-1-0/ahdbregistration/en/login

25/03/22

Arla has opened its UK recruitment hotline register

Given recent global milk production declines it was always a question of when rather than will Arla look to recruit new producers. Well as of today Arla are compiling a register of producers who wish to supply them potentially as full members or direct suppliers. So, the door is opening. Note Arla have also confirmed its NOT a case of first to call first to be considered.

24/03/22

0.46ppl milk price increase for Arla members – from 1st April

The increase is 0.5 euro cents (0.46ppl) however there is a 0.12ppl negative quarterly currency adjustment which reduces the nett amount to 0.34ppl. This increase results in the following www.milkprices.com standard litre price Conventional Organic Manufacturing 39.72 47.

24/03/22

2ppl milk price increase for suppliers to Medina Dairy – from 1st May

This increase takes producers liquid standard litre price to 39.8ppl

18/03/22

40ppl liquid standard litre price for Freshways suppliers – from 1st May

Freshways are the first GB processor to declare a 40p standard litre price other than M&S and its aligned group. The big question is will 40p encourage producers to push on and increase production. The industry problem is that costs are escalating much quicker than the market can respond to and cash flow is tighter than ever before let alone the problem of finding good staff to work on progressive dairy units.

18/03/22

3ppl total increase for First Milk members

First Milks April 1st increase now amounts to 2ppl which increases members manufacturing standard litre price to 36.75ppl and based on a liquid standard litre to 35.55ppl The Co-op has also announced a further 1ppl increase from 1st May which increases producers manufacturing standard litre price to 37.75ppl and based on a liquid standard litre to 36.51ppl

18/03/22

0.4ppl milk price increase for Sainsburys producers needs to be addressed

The Sainsburys model is looking like it’s the slowest one in town and is way off the realities of the market. The latest 1st April liquid standard litre price is only 34.3ppl (Muller SDDG) and 34.18ppl (Arla SDDG) Somehow if Sainsburys want to continue with an aligned pool they simply have to find a way to make a significant boost to this 1st April price. Ian’s inbox is busy with Sainsburys aligned farmers who want a way out as quickly as possible because they are haemorrhaging huge amounts of money.

18/03/22

1ppl milk price increase for Waitrose aligned prodcuers – from 1st April

This results in a liquid standard litre price of 38.85ppl

18/03/22

GDT eases for the first time in 2022

Tuesdays GDT Auction result saw a run of 5 consecutive increases come to an end as the overall average dipped by 0.9% to average US $5039. The drop came as a surprise to most and the expectation is that this is likely to be a one off with few if any anticipating a further drop at the next auction. The tonnage sold was 23,348 tonnes (25,208 tonnes two weeks earlier) with 109 (112 last time) winning bidders out of 177 (176 last time) registered bidders.

09/03/22

1ppl milk price increase for suppliers to Braeforge (Pensworth Liquid) – from 1st April

This takes producers liquid standard litre price to 37ppl including the 1ppl Pensworth Herd Health Scheme Supplement.

07/03/22

2.8ppl milk price increase for suppliers to Joesph Heler (cheese) – from 1st April

This increases producers manufacturing standard litre price to approximately 37.8ppl