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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.}

02/11/21

Only 8,000 GB Dairy Farmers remain with many more set to quit soon

AHDB have released their October 2021 producer numbers estimate based on levy paying farmers and only 8,000 remain with 310 (3.7%) dairy farmers having quit in the past 12 months. The National Media & TV have already picked up on the signs that between now and next spring it seems inevitable there will be a significant increase in producers exiting the industry to that seen in the past 6 months.

01/11/21

1ppl Milk Price increase for North Lakes foods producers – from 1st November

This increase takes producers liquid standard litre price to 29ppl (TBC). In making the announcement North Lakes dispensed with their normal 30 days notice of a price movement and gave 5 days warning which is a big tick for them. This is the correct position and the previous version posted at 16.35 was incorrect and based on false information from producers and some would say mischief making for which Ian apologises.

01/11/21

1ppl milk price increase for Glanbia cheese suppliers – from 1st December

This increase takes producers manufacturing standard litre price to 31ppl and based on a liquid standard litre price to 30ppl we reckon.

01/11/21

Arla to retain less profits and pass more back to farmers

Arla’s Board of Representatives have agreed to increase the current 13th payment by 50% from 1 Euro cent/kg to 1.5 to be paid in two tranches in September and March each year on the assumption the business achieves a nett profit of 2.8% or more. This new policy will remain until at least 1st January 2027.

01/11/21

Spot milk price for August averages 34.46ppl delivered

This is www.milkprices.coms August calculation and nets back to a farmgate price of 31.96ppl. With the current spot price at 40 to 42ppl there is little wonder several OMSCO organic members have contacted Ian claiming they intend to dump their 34ppl organic price in favour of a conventional contract or short-term trading contract with a processor. If they make the move let’s hope it’s the right move.

01/11/21

33ppl is Fonterra’s all-time record forecast farmgate milk price

Fonterra has reviewed its New Zealand farmers average farmgate milk price to a UK equivalent ranging from 31ppl to almost 35ppl (34.94) with a mid-point of 33ppl The actual NZ figures are $6.90 - $7.50 per kg of milk solids. The impressive increase is mainly attributed to strong demand from China and South East Asia. This payout matches the previous record payout set in 2014 and comes at a time when Fonterra are at peak processing capacity at just over 80 million (litres day) and even at this level, which is more than double the GB peak daily production (2nd May 38 million litres), the 80 million peak is below normal budgeted New Zealand output.

01/11/21

Market Update ABMCVE and AMPE both jump to 36.56/36.57ppl

AMPE has jumped almost 3ppl to 36.57ppl in a month with MCVE up over 2ppl to 36.56ppl – see table above. Cream prices have now broken the £2,000/tonne mark. SMP, mild cheddar, butter and the rest are all heading North with very tight supplies and strong demand and it’s not limited to the UK www.milkprices report a new record high for week ending 23rd October on its stonexmilkprices.

01/11/21

Kite Consulting’s report confirms consumers will simply have to pay more for dairy products

Kite Consulting have released a very thought provoking 25-page report today which clearly confirms cost inflation at both farm and processor level has to be immediately recovered and passed up stream to consumers or risk product leaving the UK as exports. “Farmers and processors simply cannot carry these costs”. The report analyses both on farm and processor costs including energy, packaging, transport and other on farm costs, including feed, fuel, labour and fertilizer.

01/11/21

Orders for sexed semen rocket

Several articles during the past three months in the New Zealand Dairy press confirm demand for sexed semen is rocketing with one firm claiming almost a doubling in demand from 110,000 last year to over 200,000 this. The main driver is the ability to produce the next generation of heifers from your best and highest genetic cows in addition to reducing the number of unwanted male calves (Bobby calves) Whilst the semen firms involved generally accept they achieve 90% conception rates this reduced rate is more than eclipsed by the improvement in genetic gain.

01/11/21

1.5ppl Milk price increase for DCD (AKA Saputo/Davidstow cheese) suppliers – from 1st December

This increase takes standard manufacturing standard litre to 32.65ppl and based on a liquid standard litre 31.49ppl

29/10/21

1ppl milk price increase for conventional suppliers to Belton Farm (cheese) - from 1st December

This increases producers manufacturing standard litre to 31.05ppl and based on a liquid standard litre to 30.3ppl.

29/10/21

2.5ppl milk price increase for members to South Caernarfon Creameries (SCC) Co-op (cheese) - from 1st December and 1st January

SCC are the only milk processor to announce back-to-back farmgate price increases including one for January 1st. The 2.5ppl increase results in the following www.milkprices.com standard litre prices Manufacturing Liquid 1st December 32.1ppl 31.