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.

The milk taps are heading for full bore at speed with spot market at 22ppl and falling

We are nowhere near peak production but suddenly, despite the relatively cold and blustery weather a flush has come early and taken most by surprise.  Several liquid processors are understood to be literally drowning in milk and any processors without any balancing facility are both nervous and treading water.  Yes, the underlying EU and global markets are relatively good, but for some the anticipated surge in ex farm volumes coupled with farmer expectation, mainly driven by strong cheese processor and Arla farmgate prices could be the tipping point particularly for those in the fragile middle ground and some brokers with limited processing capacity.

Read More

34 Muller Farmers are given 12 months’ notice to find a New Milk Buyer

Muller are the latest of a list of predominantly liquid milk purchasers to give contracted farmer suppliers notice as part of its housekeeping spring clean-up.  The 34 farmers produce an average of around 1.2million litres each, circa 40 million litres in total and will leave Muller on April 1st 2022 at the latest.  Reasons for their selection are in line with those given by other milk purchasers, including failure to meet milk quality and or high enough farm standards.

Read More

Westbury at 50% Capacity

Unfortunately, one of the two driers at Arla’s Westbury Plant is out of action due to a breakdown but is expected to be back up and running by Thursday at the latest.  Arla are temporarily diverting milk to other factories and processors, so the pressure is on but it could be much worse had the breakdown come at peak production. As it is, Arla and cheese makers close to Westbury appear to have balanced the surplus milk without having to sell any on the spot market, which is a great result for Arla given the quantities involved and the fact the spot market is down at 22ppl.

Read More

1ppl Milk Price Reduction for Suppliers to Lanchester Dairies Producers claim is a Contract Breach

Given the strength of March markets, the jaw dropping 1ppl milk price cut for suppliers to Lanchester is brutal and allegedly, takes producers April standard liquid litre price to under 25ppl making it one of the lowest and potentially the lowest farmgate price in the UK.  It’s a fact the April 1st price  gap between the best at over 30ppl  predominantly driven  by Arla and the bottom, now at under 25ppl, is worryingly wide and getting wider.

Read More

Surprise 1.5 Euro Cents (1.4/1.3ppl) April Milk Price Increase for Arla Members takes them to Over 30ppl

Ian cannot recall an April milk price increase of this magnitude which is some achievement and clearly indicates for Arla the market has turned north.  The increase will be paid to both Arla’s Conventional and Organic suppliers and results in the following www.milkprices.com standard litre prices.  The dynamics of the increase are identical to the GDT surge in prices namely; strong demand for dairy from China in addition to increasing cream and butter prices, plus lower EU Milk output.

Read More

Saphir Faces a Crisis as he is nicknamed the AHDB Undertaker

The good ship AHDB is in turmoil and looking like it could be heading for the rocks under the captaincy of Nicholas Saphir as it records its second NO vote from another levy paying sector. The latest blow, which was no surprise, is that 66.4% of the 1196 potato growers who voted said no to the continuation of the levy. This comes only a month after an overwhelming 61% of voting Horticulture levy payers said No.

Read More

Jane King CEO AHDB jumps ship 6 months early

Another fact worthy of an explanation is how come in October 2020 AHDB announced that Jane King would step down as CEO after a six-year spell at the end of September 2021 having served 12 months’ notice. It turns out she leaves next week on March 31st, 6 months early! Was Jane given the push or has she joined others, like Tom Hind (formerly Tesco Tom) who left last September and was one of the first to hit the exit button.

Read More

Arla Set to Close its North Cornwall Soft Cheese Factory

Arla has announced it has commenced consultation with 37 staff at its Trevarrian soft cheese factory, which is supplied with milk from eight local Arla Members.  The creamery is on the North Cornish Coast between Padstow and Newquay and produces Cornish Brie’s and Camembert’s. The Cornish County Larder based soft cheese business started life in 1996.  In January 2011, under the direction of CEO Neil Kennedy, Milk Link purchased the creamery before a year later it was transferred to Arla as part of the “merger” in 2012.

Read More

1ppl Milk Price Increase for Members of Northern Ireland Co-op Dale Farm

This is effectively a backdated price increase covering deliveries made in January and takes members liquid standard litre price to a healthy 28.59ppl and according to www.milkprices.com compares to 26.09ppl in January 2020 so a 2.5ppl (9.6%) rise year on year.  For its Kendal farmer suppliers, the January price remains at 27.64ppl based on a liquid standard litre.

Read More

0.6ppl Milk Price Increase for M&S Farmer Suppliers – from April 1st

This takes producers standard liquid litre milk price to 33.11ppl.   

Read More

0.25ppl Milk Price Increase for Arla Direct Suppliers (Non Members) – from April 1st

The increase applies to Arla’s conventional and organic direct suppliers. This takes producers conventional standard litre milk price to 27.58ppl and based on a liquid litre 26.5ppl.    

Read More

Fonterra Increases its Farmgate Milk Price Forecast to almost 30ppl for the second Consecutive Month

Hot on the heels of the latest sensational GDT Auction result came on announcement from the New Zealand giant of a further increase in its forecast farmgate milk price.  The latest increase takes the mid-point price up from NZ $7.20 (28.52ppl) to $7.60 (29.77ppl) with the range spanning from NZ $7.30 (28.6ppl) to $7.90 (30.95ppl).   

Read More