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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.}

22/12/21

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

21/12/21

0.9ppl (1 euro cent) further milk price increase for all Arla members – from 1st January

This includes a positive quarterly currency exchange rate adjustment 0.01ppl This latest increase results in the following standard litre price and is a 0.9ppl increase for both organic and conventional supplies. Conventional Organic Manufacturing Standard Litre 37.

10/12/21

3ppl Milk Price increase for Lanchester Dairies (Liquid) suppliers - from 1st January - PRODUCER NOTIFIED

This increases producers liquid standard litre price to 32ppl.

10/12/21

2.85ppl Milk Price increase for Lactalis (The Fresh Milk Company)

This increases producer’s liquid standard litre price to 33.33ppl and based on a manufacturing standard litre the price increases to an estimated 34.7ppl. The increase is split 0.5ppl from 1st December and a further 2.33ppl from 1st January.

10/12/21

2.5ppl Milk Price increase for Waitrose (Muller) aligned producers - from 1st January

This increase producers liquid standard litre price to an all time record of 36.85ppl.

10/12/21

2ppl revised Milk Price increase for Joseph Heler suppliers (cheese) - from 1st January

Last Friday this Bulletin reported that Helers 1st January 1ppl price increase was a disappointment to Helers farmers. The cheese maker has doubled its January increase from 1ppl to 2ppl to an estimated standard manufacturing litre price of just under 33ppl.