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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.}

09/12/20

Saputo to Stand On until 1st February

This maintains producers www.milkprices.com standard litre price at 29.15ppl and based on a liquid standard litre 28.11ppl. Note until April 1st Saputo have agreed a minimum guaranteed floor price at this level.

09/12/20

GDT Auction result bounces up 4.3% and farmgate milk price forecast is up to 27.5ppl

Last Tuesday’s auction saw the average price jump by 4.3% to average US $3261 per tonne, the largest increase since July. Prices for all 8 products auctioned rose with notable movements: WMP up 5.0% to average US $3182 tonne Butter up 3.8% to average US $3986 tonne SMP up 3.6% to average US $2889 tonne Cheddar up 2.4% to average US $3734 tonne Hot on the heels of the auction came a price revision from New Zealand Co-op Fonterra that the current years ex-farmgate milk price pay-out range of 6.

09/12/20

Muller UK Losses in Liquid Still a Problem

Muller UK and Irelands financial results for calendar year 2019 show a loss of £76 million, which whilst less than the £100 million recorded in both 2017 and 2018 is still an eye watering number. Total revenue for the year was down to 1.9 billion (1.93 billion 2018) Mullers 2019 operating loss prior to amortisation and one off charges totalled £65.6 million compared to lower comparable losses totalling £17.

09/12/20

Producer Numbers Down

GB dairy farmer numbers have fallen by 4.7% or 410 farms in the past 12 months to the current level of 8310 farms and according to AHDB dairy the average milk output per farm has risen to 1.5 million litre.

09/12/20

Market Update/Brexit and only 23 sleeps to the end of the Brexit Transition Period

Cream prices fell from an October average of £1,540 tonne to £1,370 tonne in November (2019 £1550/tonne). The main fall in cream values came post the National Lockdown. This puts November cream income at 7.8ppl down 11% from 8.7ppl in October. Spot cream prices are currently down to around £1330 tonne with spot milk trading at 27 to 30ppl (source www.milkprices.

09/12/20

1ppl Muller Advantage Bonus Payment Launch

Muller have announced the optional opportunity for its 600 Muller Direct suppliers to earn an additional 1ppl annually for a programme which covers a reduction in antibiotic use, sustainable sourcing of feed, reductions in power and water usage, recycling and boosting the farms biodiversity. The programme starts in January and we assume that if over 50% of Muller Direct suppliers achieve the bonus it will be added into the www.

09/12/20

Arla either open the books or face the Lawyers

The Danish National Association of Dairy Farmers (LDM) have launched a legal challenge against Arla alleging its farmgate milk pricing policy is out of line with Co-op rules. Arla now have to deal with the Lawyer representing the Danish Dairy Producers Association LDM who have given the Co-op four weeks to disclose information it has requested for over 12 months if Arla wishes to avoid a legal battle.

09/12/20

Top End British Cheese Exported Continues to Grow

Specialist cheese exporter, Somerdale International based in Somerset has declared its 31st March 2020 results showing record sales of British Cheese to the USA and its worldwide sales to over 50 countries totalling £41.9 million (+9%) on 2019 of which £19 million of the cheese landed in the USA. Somerdale whilst affected by Covid 19, US tariffs and uncertainties surrounding our trading terms post Brexit have minimal sales of cheese to the EU.

09/12/20

Royal Hospital Chelsea Ceremony of Cheeses Soldiers on despite Covid

Full marks to Dairy UK and all its supporting cheese producers for ensuring the annual ceremony of British cheeses took place yesterday in Covid compliant conditions. A total of 285kg of cheese was donated by our generous cheese processors to the Chelsea Pensioners ensuring the long tradition continues.

09/12/20

Friesland Campina Cooperative is also under attack

Close to 3,200 Friesland Co-op members (22%) have responded to an independent questionnaire with the majority wishing they could investigate switching to an alternative milk purchaser if one was available. The main issue appears to be a lack of member involvement and the fact the majority of those surveyed believe the board do not listen to members views and that members have no influence.

09/12/20

David Hartley MD of Wensleydale Creamery will be missed by many

Popular MD of the famous Wensleydale Creamery has left us having lost his battle to cancer last Wednesday. A statement from the Creamery read; “David was instrumental in the management buyout, which saved the Creamery in 1992. Over the past 28 years, under his direction, the business became an integral part of the local community, with coveted recognition for its award-winning range of cheeses.

20/11/20

Medina (Liquid) to stand on until 1st

This maintains producers standard liquid litre price at 26.93ppl based on an average of all Medina contracts.