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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.}

07/09/21

Today’s GDT Auction jumps 4%

Today’s auction saw the average all products price lift by a tasty 4% to average $3927 tonne for the 25,093 tonnes sold with all products sold recording gains of 3% plus. On offer was an increase of 2550 tonnes (+11.3%) compared to that sold in the last sale. In fact, prices were up, tonnage sold was up and the number of bidders increased from 180 to 187 Notable movements were SMP + 7.

02/09/21

July average farmgate milk price 30.9ppl

DEFRA’S current estimated average farmgate milk price for July stands at 30.9ppl, which is 11% higher than was recorded in July 2020. Note this is the average paid to farmers bank accounts, not an average standard litre price.

02/09/21

Crediton Dairy to stand on until at least 31st October

This maintains producer’s liquid standard litre price at 30.5ppl for September and October and includes the recently introduced 13th payment of 0.5ppl

02/09/21

Saputo (AKA Dairy Crest Davidstow) to stand on until at least 31st October

This maintains producers manufacturing standard litre price at 31.15ppl and 30.04ppl based on a liquid standard litre.

02/09/21

Belton farm to stand on until at least 31st October

This maintains producers standard manufacturing litre price at 30.05ppl and based on a litre at 29.3ppl

02/09/21

Barbers to stand on until at least 31st October

This maintains producers standard manufacturing litre price at 30.86ppl and based on a liquid standard litre at 29.78ppl

02/09/21

Meadow Foods to stand on until at least 31st October

This maintains producer’s liquid standard litre price at 29ppl

02/09/21

31.036ppl September milk price for Friesland Campina producers – from 1st September

The worlds largest Dairy Co-op, based in Holland, Friesland Campina have increased members farmgate milk price to a www.milkprices.com equivalent liquid standard litre price of 31.036ppl for September deliveries. The Co-ops September organic liquid standard litre equivalent is 41.041ppl (source www.milkprices.com)

02/09/21

The Market

Spot milk continues to trade at a strong 34-36p delivered to factory but in reality, only a handful of loads are moving on a daily basis with one dominant buyer requiring additional spot milk AKA the Freshways/Medina group. According to AHDB August dairy product prices firmed with prices for cream, SMP, butter & mild cheddar all up compared to those reported in July.

02/09/21

Transport drivers in very short supply with ex farmgate milk collections suffering.

The UK dairy industry, like all other businesses, is facing a serious shortage of vehicle drivers mainly due to fact that during the Covid lockdown, no new drivers came into the system due to no tests, plus the Brexit effect which has cut the supply of mainland Eastern European drivers. The Covid and Brexit effect is estimated to have clocked up 100,000 missing lorry drivers with 30,000 HGV class 1 drivers lost due to the fact the examiners were all on furlough.

02/09/21

Arla report a sold first half year financial result

Arla’s first six months financials have been released and are a solid set of results. Total Arla Group revenue up 1.2% to Euro 5.44 billion Arla UK Sales up 3% Branded sales continue to grow collectively up 13% with Cravendale sales up 10%, Bob +21% and Arla protein milk +34% Branded volume +5.6% (+10.4% in 2020) Arla, like all others in the industry, recognise that current inflation will hit its cost base, particularly in energy, fuel, packaging and indeed staff recruitment (see below).

02/09/21

Milk & More is no more for Potters

Milk & More were the Potter office & households doorstep milk suppliers until last Tuesday when it all went wrong. On Tuesday our 3 gallon a week plus glass bottle drop was missed and when Ian emailed M&M he received an ‘automated’ response saying they would respond within 3 days. However, 8 days later no explanation, no replacement delivery and no reply. Exit Milk & More and enter local Arla farmers Alkmonton Dairy who seized the opportunity.