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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.}

05/11/21

3ppl minimum one hit milk price increase for Freshways suppliers – from 1st January

Freshways have gone for a big one hit increase of 3ppl from 1st January which will take producers standard liquid litre price to 33ppl which is undoubtedly where all liquid processors need to be as a minimum asap. There should be benefits to Freshways and its customers from this one hit approach in terms of not having to wrestle with them on price increases on a monthly basis.

05/11/21

Arla unveils its 5 year global plan.

Arla has outlined its 5 year future 26 plan, accompanied by a powerful promotional film and the conclusion can only be Arla is ambitious and plans to drive change throughout the dairy chain. Global demand for dairy products is predicted to grow by 2% each year driven predominantly by Asia, China, West Africa and The Middle East. Arla were very bullish over the part its brands will continue to play in achieving its annual 3% to 4% growth target particularly the global Arla brand as well as Lurpak, Puck & Castello etc.

05/11/21

Arla’s 13th Payment will be £830 million

The previously announced 13th payment, increase of 50% from the current 1 euro to 1.5 euro cents per kg, will result in Arla members receiving just over 1 billion euros in total as a 13th payment over the next five years subject to Arla achieving its net profit target of 2.8%. This payout is worth an average additional £17,620 to each member annually. Note the increased payment applies with immediate effect so the 13th payment due at the end of March 2022 for milk produced by members this year will receive the uplifted amount.

05/11/21

‘Pollinating the Peak’ wins the National Lottery Project of the Year!

Back on the 14th September Ian requested readers consider voting for the Bumblebee Conservation Trust’s project – Pollinating the Peak as a finalist National Lottery Project of the Year award 2021! The project has been declared the winner so thanks to all who voted. The project is local to the peak district and has inspired and engaged over 20,000 people across Derbyshire to help raise awareness and provide habitat especially the Bilberry bumblebee.

05/11/21

0.5ppl Bonus unveiled by First Milk

As part of its ambitious net zero target by 2040 First Milk has announced a 0.5ppl bonus available to members who complete and commit to a regenerative farming plan by 31st March next year. The online tool will cover current farm practices and planned changes to reduce carbon emissions as well as ones aimed at increasing biodiversity and carbon sequestration.

03/11/21

1ppl milk price increase for First Milk members - from 1st December

This takes producers manufacturing standard litre price to 32ppl and based on a liquid standard litre to 31ppl

02/11/21

Whopping 4.3% increase in only 2 weeks for the GDT Auction

Its now five rises in the past 6 auctions and this time it’s a whopping 4.3% increase for the big hitting tonnage on offer of almost 30,000 tonnes actually sold (29,915). This represents an additional 2079 tonne increase equating to a 7.5% uplift in two weeks. All bar one product on offer increased in value as the market continues to head North with limited signs of the auction having reached its peak.

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.