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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.}

21/08/20

Freshways to stand on until 1st October

This maintains producers liquid standard litre price at 26ppl following a 1ppl 1st August increase.

21/08/20

GDT Auction prices decline for the third consecutive Auction

This Tuesday’s Auction recorded on average all products reduction of 1.7% to average US $3004 tonne and follows earlier falls of 5.1% (4th August), 0.7% (21st July) however the 7th July recorded a whopping 8.3% jump. The quantity traded this week was a factor with 33,331 tonnes sold. The only product to increase in value was SMP up +1.1% to average US $2,608 tonne.

21/08/20

England & Scotland Milk Supply balance sheet

AHDB Dairy calculate that during 2019/20 England was 88% self sufficient in milk with 56% of farm output going to liquid and 19% to Cheese. Turning to Scotland during 2019/20 they calculate 18% of all Scottish on farm milk had to be transported to England for processing totalling 269 million litres. This equates to 9,440 x 28,500 litre loads a year or 26 loads every day of the year.

21/08/20

51,000 Cows less as GB milking herd decreases

According to AHDB Dairy at July 1st GB dairy cow numbers reduced by 2.9% (51,000 cows) to 1.68 million compared to the numbers recorded at 1st July 2019. Against this youngstock numbers have risen which is the first rise in numbers since October 2016. AHDB estimate 25% of GB Diary farmers had to cut milk output as a result of Covid19 and culling was an instant and effective way to cut production as requested by several liquid processors.

21/08/20

Dairy response fund/Aid application window extended by 1 month

Any dairy farmers who qualify for the governments Dairy Aid who haven’t applied now have an additional month to apply with the new deadline of 11th September. The maximum award remains capped at £10,000 and the 174 applications received to the end of July are not even 10% of the numbers some initially trumpeted to be severely affected by Covid19.

21/08/20

Cathedral City Cheese on sale in Canada

Saputo, who purchased the Dairy Crest cheese business its brands and Davidstow processing facility are now exporting the UK’s leading cheese brand Cathedral City to its motherland Canada where it is available in 500 stores. The good news is Cathedral City cheese is all made in Davidstow Cornwall from milk supplied by 350 local farmers. Many years ago, Ian had intelligence from down under that Dairy Crest were exploring the possibility of manufacturing Cathedral City there.

21/08/20

Ornua Foods UK (First Milks partner) 2019 results were solid

Ornua Foods UK who market First Milks cheese output has released its 31st December 2019 results which were solid and consistent. Turnover up 10% to £354 million Pre Tax profit £4.1 Million (£6.8m in 2018) the reduction mainly due to investment in the business.

05/08/20

Belton Farm (Cheese) to stand on until 1st October

This maintains producers manufacturing standard litre price at 27ppl and based on a standard liquid litre at 26.25ppl.

05/08/20

Meadow Foods (Liquid) to stand on until 1st September

This maintains producers liquid standard litre price at 26ppl across all Meadow contracts and regions.

05/08/20

Muller Direct to stand on until 1st October – Amended

This maintains producers liquid standard litre price at 25.25ppl plus 1ppl to 26.25ppl for suppliers who qualify for the Muller Direct Premium.

05/08/20

GDT Auction down 5.1 percent

Todays GDT Auction fell by an average 5.1% today which was more than a bit of a shock. Notable were: WMP down 7.5% to average US $3003 tonne Cheddar down 5.3% to average US $3568 tonne SMP down 4.6% to average US $2583 tonne Butter down 2.8% to average US $3438 tonne

04/08/20

1.25ppl milk price increase for suppliers to Pattemores (liquid) from August 1st takes producers back to pre Covid 19 level

During May (24ppl), June (24ppl) and July (25ppl), Pattemores ex farmgate milk price fell to the levels in brackets but from the 1st August is back up to its pre Covid 19 level of 26.25ppl based on a liquid standard litre price.