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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.}

22/02/22

0.75ppl milk price increase for suppliers to Wyke Farms (cheese) – from 1st March

This increase comes in two parts with 0.5ppl paid to all suppliers plus 0.25ppl paid to farmers who have completed their farms carbon footprint. This increase takes Wykes manufacturing standard litre to 36.5ppl and based on a liquid standard litre to 35.25ppl. In addition, Wyke have also confirmed a 0.25ppl 1st April increase for those farms who can take artic milk tankers in conjunction with 24/7 collections.

22/02/22

0.62ppl milk price increase for Wensleydale (cheese) suppliers - from 1st February PRODUCER NOTIFIED

This increase takes producers manufacturing standard litre price to 35.02ppl and based on a liquid litre to 34.07ppl

22/02/22

0.32ppl milk price increase for Sainsburys aligned producers – from 1st March

This increase takes producers liquid standard litre price to only 33.9ppl (Muller) and 33.78ppl (Arla).

22/02/22

www.milkprices.com spot milk prices for November & December

The average November spot milk price delivered to processor was 43.55ppl from which the accepted deduction of 2.5ppl should be applied to cover haulage, testing and traders margin to nett back to 41.05 ppl farmgate equivalent price. December recorded the usual wild swings pre- and post-Christmas with several loads traded at 56ppl. However, during the festive period some trades were at 25 to 30ppl with the month averaging 45.

22/02/22

Market Reality

Spot milk continues to trade at around 45ppl. Most milk processors are continuing to push through farmgate milk price increases and then go to customers to extract those increases which in a handful of cases is proving extremely difficult. So difficult that the major UK coffee chain we wrote about two weeks ago could force its processor to declare a farmgate milk price reduction of 1ppl within days which will cause a riot and long term supply consequences.

22/02/22

GDT annual report confirms it is the World’s key dairy price barometer

GDT started in 2008 and has grown into a huge successful global trading platform. Fonterras vision for GDT “to be the world pre-eminent price discovery platform for core dairy products” has certainly been achieved. Headlines from the 2021 review include; 626,747 tonnes traded (down 7.6% on 2020) valued at US $2.5 billion (£1.84 billion) 273 winning bidders out of 304 registered bidders from 70 countries The average auction price increase was +30% in 2021 hitting a 7 year monthly high in December.

22/02/22

Have aligned contracts hit their sell by date

Numerous Sainsburys and Tesco aligned producers are now contacting Ian questioning whether retailer aligned contracts have a role including the fact they are miffed that since 2020 the aligned milk price has been astray of the non-aligned. Taking into account Scaleback Muller Tesco farmers claim it was back in October 2020 since there was any appreciable differences between the Muller Direct and Tesco aligned farmgate prices.

22/02/22

Dairy Industry gives the 21st City Food Lecture

This years annual City Food Lecture, organised by 7 of the food industries worshipful Company Liveries, was given by Arla’s Ash Amirahmadi. Ash highlighted the £1 billion Arla had invested in the UK in the past 20 years and that Arla UK accounted for 0.5% of GDP (£6 billion). He stressed that no one in the food industry can afford to ignore consumer trends as did Black Cabs when the challenger Uber came to town.

22/02/22

Panorama – The fallout

Ians brief appearance on the programme, following a 3½ hour film crew visit to our offices clearly meant most of Ians answers to the various questions were not what Panorama really wanted. The surprise undercover footage of cruelty by workers at a dairy unit in Wales was rightly condemned by farmers who were furious. Equally the missed opportunity presented to well known farm vet Roger Blowey came in for criticism as did his unqualified general comment on the lifting hoist use on most units.

22/02/22

Don’t miss this opportunity to influence how AHDB Dairy operates

Now Ian has not always been a fan of AHDB and how it operates from its chargrilled expensive ivory tower in Stoneleigh and so far as its dairy arm is concerned over the years, he has tried to keep them on their toes and to expose goings on behind those doors. However as much as they deserve the occasional prod those opportunities have become few and far between in the last 3 years or so.

22/02/22

The New Arla Agriculture Director Paul Savage

Paul Savage, who is well known to many in the Arla Co-op having worked for them for 10 years plus is the new Arla UK Agricultural Director with immediate effect. Paul will be responsible for Arlas 2,300 UK members in addition he will be a member of the Arla UK leadership team. Its not a bad start to your new permanent role when close to less than 30 hours into the job the business confirms a 1.

22/02/22

0.77ppl milk price increase for Lactalis (The Fresh Milk Company/Cheese) – from 1st February

This increases producers manufacturing standard litre price to 35.49ppl and based on a liquid standard litre to 34.1ppl. In addition, Lactalis have confirmed a minimum 0.9ppl increase from March 1st which will result in a minimum 1st March liquid standard litre of 35ppl and based on a manufacturing standard litre 36.41ppl