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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.}

01/10/21

Some processors are playing Russian Roulette whilst others are understandably frightened

Escalating inflation at both processor and farm level appears unstoppable. There are reports that some of our largest producers are cutting milk output due to labour shortages whilst those who have labour are facing cost inflations particularly if they were paying relatively low rates to skilled operators. Three processors Ian has spoken to this week have basically said either customers accept price increases or risk not having the milk this winter.

30/09/21

1ppl Milk Price increase for Muller Direct Suppliers – from 1st November

This increases producer’s liquid standard litre price to a level 30ppl including the Muller Advantage 1ppl paid annually in arears. This increase is likely to be followed by the majority of other liquid processors who have yet to declare.

24/09/21

1.5ppl milk price rice for Paynes Suppliers

Yorkshire liquid processor Charlie Payne has today declared a 1.5ppl farmgate milk price increase split over 2 months with 1ppl starting in a week’s time on October 1st and an additional 0.5ppl from November 1st. This is highly likely to be a case of the first move is to increase farmgate milk prices in recognition of rapidly rising on farm costs to be quickly followed by the necessity for Payne’s to achieve meaningful price increases from customers to cover both these farmgate price increases plus an obvious raft of processor increased costs e.

24/09/21

1.5ppl milk price rise for Freshways with a 6-month minimum price guarantee

Freshways have today declared a 1.5ppl farmgate milk price increase from October 1st resulting in a liquid standard litre price of 30ppl. The announcement comes with a welcome commitment that this 30ppl price will be a floor price until at least 31st March 2022. Note this means only upward movements can be declared. Freshways are commencing a milk recruitment campaign for potential new suppliers with existing direct suppliers invited to put forward requests for increased standard litre deliveries.

24/09/21

0.47ppl milk price increase for suppliers to Wensleydale Creamery (cheese) from 1st October

Wensleydale Creamery announced on the 21st September, ahead of its competitors, a 0.47ppl increase which results in a liquid standard litre price of 29.47ppl.

24/09/21

0.5 Euro cent milk price increase for Arla members – from 1st October – (Posted Facebook and Website 22nd Sept)

Arla have declared a 0.5-euro cent milk price increase for both its conventional and organic members from October 1st. Coupled with a 0.13ppl currency adjustment the nett increase is 0.32ppl resulting in the following www.milkprices.com standard litre prices. Conventional Organic Manufacturing 32.

24/09/21

August average farmgate milk price 31.24ppl

This is 11% up on the August 2020 average. The July average farmgate price previously estimated at 30.9ppl has been revised to 30.09ppl and is according to Dairy Industry News the third highest average ever recorded.

24/09/21

GDT up another 1% to break the $4,000 tonne mark – (Posted Facebook and Website 21st Sept)

Hot on the heels of a whopping 4% average all products increase only two weeks ago comes today’s Auction result where average prices rose a further 1% to average US $4011 tonne this been the 3rd consecutive increase. Total sold amounted to 24,476 tonnes slightly down on the 25,093 tonnes sold two weeks ago. Key movements were: WMP up 2.2% to average US $3,777 tonne SMP up 0.

24/09/21

Next Week

Who would have expected the likes of Payne’s, Wensleydale and Freshways to announce price increases from 1st October alongside Arla and ahead of the pack?

24/09/21

Mirror, Mirror on the wall Lactalis is the biggest of them all

According to Rabobank Nestle is now the Number 2 worlds largest dairy processor having been top trumped by Lactalis whose revenue amounted to £16.8billion (US $ 23 billion) with Nestle £15.34 billion. Arla weighs in at 8th position.

22/09/21

0.5 Euro cent milk price increase for Arla members – from 1st October

Arla have declared a 0.5 euro cent milk price increase for both its conventional and organic members from October 1st. Coupled with a 0.13ppl currency adjustment the nett increase is 0.32ppl resulting in the following www.milkprices.com standard litre prices. Conventional Organic Manufacturing 32.

21/09/21

GDT up another 1% to break the $4,000 tonne mark

Hot on the heels of a whopping 4% average all products increase only two weeks ago comes todays Auction result where average prices rose a further 1% to average US $4011 tonne. Total sold amounted to 24,476 tonnes slightly down on the 25,093 tonnes sold two weeks ago. Key movements were: WMP up 2.2% to average US $3,777 tonne SMP up 0.9% to average US $3,302 tonne Cheddar down 1.