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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.}

09/02/21

Markets

Spot milk is trading at 25 to 26ppl delivered to factory so roughly worth 23 to 24ppl ex farm for the surplus.

09/02/21

Mandatory Code of Conduct to be drawn up by Government

The outcome of the various NFU’s requests and campaigns to government for legislation on milk contracts, with the aim that it will address the perceived imbalance in power currently in favour of processors at the expense of dairy farmers, is that the current voluntary code will be ditched in favour of a mandatory code. All four regions will now have a huge task to develop a workable code and set of minimum standards but for sure for the farmers supplying one or two processors who continue to back date price cuts, its either time to do what’s right or shut up shop.

22/01/21

£4.5million Profit for Yew Tree Dairies (+562%)

Yew Tree Dairies (AKA Woodcocks) based in Shelmersdale, Lancashire have recorded a record set of accounts for year ending 31st March 2020, where pre-tax profits jumped from £800,000 (18/19) to £4.5million (19/20) based on a staff of 16. Their brave move to invest in a modern powder plant certainly appears to be paying them back handsomely if these results are anything to go by.

22/01/21

GDT Auction Result Jumped 4.8%

Prices at this weeks GDT Auction jumped for the fifth consecutive auction and adds the tally to 8 increases in the past 9 auctions. This weeks jump of 4.8% compared to the first 2021 Auction only two weeks ago pushed the average all products price to US $3593 tonne for 29,606 tonnes sold. Notable Price Movements were: SMP up 7.0% to average US $3243 tonne Butter up 4.

22/01/21

First Milk Member Milk Price to Stand On Until at least 1st March

This maintains producers manufacturing standard litre price at 28.93ppl and based on a liquid standard litre the price holds at 28ppl. For its Haverfordwest Creamery Tesco Cheese Group their manufacturing standard litre price holds at 30.43ppl. Note last month First Milk confirmed the 0.5ppl member premium will continue for the milk year commencing 1st April 2021.

22/01/21

Arla Member Price to Stand On until 1st March

Arla have announced its member milk price for both conventional and organic supplies will remain unchanged for February. Based on www.milkprices.com standard litre prices, farmers February prices are as follows:

15/01/21

FIRST MILK MEMBER MILK PRICE TO STAND ON UNTIL AT LEAST 1ST MARCH

This maintains producers manufacturing standard litre price at 28.93ppl and based on a liquid standard litre the price holds at 28ppl For its Haverfordwest Creamery Tesco Cheese Group their manufacturing standard litre price holds at 30.43ppl. Note last month First Milk confirmed the 0.5ppl member premium will continue for the milk year commencing 1st April 2021.

08/01/21

0.75ppl Milk Price reduction for Arla Direct suppliers from the 1st February

This reduces producer’s liquid standard litre price from 27ppl to 26.25ppl and based on a manufacturing standard litre to 27.33ppl.

08/01/21

0.4ppl milk price increase for Tesco (TSDG) aligned suppliers – from 1st February

This increase is a result of the Tesco cost tracker review and results in a liquid standard litre price of 31.02ppl (Arla Tesco) and 31.27ppl (Muller Tesco)

08/01/21

0.22ppl price increase for suppliers to the Co-op Group – from 1st February

This increases the Muller Co-op groups standard litre price for the next quarter to 29.88ppl.

08/01/21

Barbers (cheese) to stand on until at least 1st March

This maintains producers manufacturing standard litre price at 29.83ppl and based on a liquid standard litre 28.79ppl.

08/01/21

Belton Farm (cheese) to stand on until at least 1st March

This maintains producers manufacturing standard litre price at 28ppl and based on a liquid standard litre 27.25ppl.