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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.}

07/01/22

0.75ppl milk price increase for Dale Farm Northern Ireland members - from 1st November

This increases producer’s liquid standard litre price to 33.59ppl

07/01/22

Milk and More to go head to head with the likes of Ocado

The Milk and More doorstep delivery business which was purchased in 2015 by Muller as part of the Dairy Crest liquid buyout is to divorce itself from Muller to become a standalone business next month. The plan is to expand the doorstep delivery service and the range of products households can order on line and compete with the likes of Ocado. The Milk and More business has 400,000 household customers and whilst Theo Muller will continue to retain the largest shareholding part of the business will be floated next month as the business seeks partners who can provide products to assist with its expansion plans.

29/12/21

1ppl Milk Price increase for Arla Directs – From 1st February

This additional increase applies to both Arla directs, non-members and only a handful of producers, as well as its Tesco and Sainsburys aligned farmers. This increase takes producers liquid standard litre price to 32ppl ( conventional ) and 39.5ppl ( Organic).

22/12/21

1ppl milk price increase for Dale Farm (Northern Ireland) Co-op members – from 1st October

This increases members liquid standard litre price to 32.84ppl and note this is a 1st October price!!

22/12/21

1.25ppl milk price increase for Dale Farm Cumbria Suppliers – from 1st December

This increases producers liquid standard litre price to 31.39ppl

22/12/21

1ppl milk price increase for OMSCO producers – from 1st January

In addition OMSCO have declared an additional 0.5ppl will be paid on all A litres supplied in October, November and December and this top up payment will be made in January. Clearly OMSCO have some very serious challenges ahead and have still not managed to put producers back to the milk price they received in September. You will recall that from the 1st October OMSCO’S 200 or so Organic Milk Suppliers were given only 24 hours’ notice of a bombshell 2ppl milk price cut.

22/12/21

2.5ppl milk price increase for suppliers to Llaeth Cymreig (liquid) – from 1st January – PRODUCER NOTIFIED

This takes producers standard liquid litre price to 32.5ppl including a loyalty bonus.

22/12/21

Roddas (The Cornish Clotted Cream Kings) milk price increase

Roddas tend to only come onto the radar once a year and the recent price increases announced by its Cream of the Crop basket of prices (Crediton, Arla and Davidstow) mean Roddas producers 1st January standard liquid litre price will rise to 34.46ppl! During 2021 Roddas average price paid to its suppliers weighs in at a healthy 30.93ppl

22/12/21

Spot milk 50p litre

Spot milk is always high in the run up to Christmas and has traded at 50ppl but has pulled back to circa 30ppl over Christmas but is expected to rock back up into the 45p mark soon after. According to www.milkprices.com the September spot milk price net to the farmer averaged 32.67ppl and in October rose to 35.97ppl

22/12/21

The Outlook

In a Nutshell it is positive with the real possibility that during 2022 some producers will receive a 40ppl standard litre price. In short more farmgate milk price increases are to come. At processor level a handful of liquid processors, one broker as well as at least one cheese processor are clearly struggling to push through customer price increases which is holding their farmgate milk price at the bottom.

22/12/21

Have your say on how AHDB Dairy is run in the future

Earlier this year, it was announced by George Eustice that dairy farmer levy payers would get a vote in spring 2022. Badged as Shape the Future is how AHDB is delivering on that announcement. AHDB Dairy will change as follows A five yearly vote by dairy farmers Input into how the levy is invested/ spent with AHDB Dairy held to account for delivery as well as transparency as to where the £ has been spent.

22/12/21

0.9ppl Milk Price Increase for suppliers to South Caernarfon Creameries (Cheese) from 1st February

This is the first February price increase Ian has been notified about and takes the Welsh Co-operatives manufacturing standard litre price to 35ppl and based on a standard liquid litre to 33.82ppl