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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.}

04/02/22

Rumours of a possible farmgate price cut

There are very strong rumours that as a direct result of a major UK coffee chain refusing to accept price increases, as necessary for both supplying farmers and processors, one processor is likely to be faced with no alternative other than to reduce its farmgate milk price by 1ppl or more from 1st March (at the latest). This would be completely against the direction of flow and smacks of a commercial team failing to understand the realities, they could may quickly be educated on the law of unintended consequences.

04/02/22

Liquid Processors starting to open the recruitment doors

Having completed a £3 million expansion resulting is a processing capacity in excess of 1.5 million litres day Paynes Dairies (liquid) are now recruiting producers. In addition, Wells Farm Dairy (liquid) and Freshways are both actively recruiting.

04/02/22

GDT price index highest since March 2014

This weeks GDT average price averaged $4630 tonne the highest average since March 2014 and up 4.1% on only 2 weeks. Total sold 28,463 tonnes to 111 winning bidders with 162 bidders involved. Notable prices were WMP + 5.8% to average US $4324 tonne Butter + 3.3% to average US $6359 tonne Cheddar + 2.4% to average US $ 5684 tonne SMP + 2.

04/02/22

Valentine’s day BBC1 Panorama Programme

A 30-minute Panorama Dairy Programme on February 14th aims to reveal the truth about the British Dairy Industry covering animal welfare standards, how dairy products are produced with footage from three “very different” dairy farms in Scotland, England and Wales

04/02/22

OMSCO loosing producers

During January Ian was contacted by five OMSCO members all of whom have decided that based on the current OMSCO farmgate milk price and its rather “foggy outlook”” they should exit Organic and find a conventional processor. This is a very tough call but appears to now be necessary following OMSCO’S whopping but necessary price correction in the Autumn, coupled with horrendous cost inflation which they cannot absorb.

27/01/22

1ppl milk price increase for members of South Caernarfon Creameries (cheese) from 1st March

This increases producers manufacturing standard litre price to 36ppl and based on a liquid standard litre to 34.79ppl

27/01/22

3ppl milk price increase for suppliers to Wells Farm Dairy Suppliers (liquid)

This is spilt 1ppl from 1st February and an additional 2ppl on 1st March to take producers standard liquid litre price to circa 36.2ppl

27/01/22

1.6ppl milk price increase for conventional Arla directs (non-Arla members) from 1st February

This increases producers liquid standard litre price to 33.6ppl

27/01/22

1.25ppl milk price increase for Organic Arla directs (non-Arla members) from 1st February

This increases producers organic liquid standard litre price to 40.75ppl

24/01/22

Arla member price is stand on at 37.58ppl & 45.03ppl for February

Arla’s member price for both conventional & organic suppliers will hold for February at its January level www.milkprices.com Standard Litre Conventional Organic Manufacturing 37.58ppl 45.03ppl Liquid 36.14ppl 43.31ppl As part of its market overview Arla highlights the global decline in milk production with the key influencing factor remaining escalating on farm costs The EU28 milk intake down 1% in November The USA milk intake down 0.

24/01/22

MCVE goes over 40ppl to set another record

Both MCVE and AMPE set record highs in December according to AHDB Dairy Figures. AMPE now stands at 44.7ppl (+2.42ppl in the month) MCVE now stands at 40.98 (+1.76ppl in the month) 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) ais an indicator of the factory gate value of a litre of milk used for mild Cheddar and whey powder/butter.

21/01/22

3ppl milk price increase for suppliers to Pensworth (liquid) – from 1st February & 1st March

This increases producers standard liquid litre price to 34ppl (1st February) and 36ppl (1st March) which includes the additional 1ppl premium paid to those producers who participate in Pensworths Herd Health Programme.