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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.}

04/08/20

The Market

Cream prices briefly came close to hitting £1.50 but appear to have settled at £1.41 to £1.43. Meanwhile spot is holding fairly stable at 27 to 31ppl, but note that’s a delivered to the buyers factory spot price.

04/08/20

Medina to close Watsons Dairy – Hampshire reducing liquid processing capacity by 200 million litres

It has been rumoured for several months and today Medina have confirmed it is to close its Watsons fresh liquid processing capacity with the potential loss of 144 jobs. The capacity of the site is around 200 million litres but at present is running at less than 50%. The milk will be will be diverted to Buckleys (Huddersfield), Severnside (Gloucestershire) and Freshways in Acton, London who in the press release are described as Medina’s processing partner.

04/08/20

Arla and Sainsbury’s in joint Beef Programme

Arla have announced a voluntary Angus Cross beef scheme with Sainsbury’s to help its ‘every calf has a value’ policy. It is understood, calves will be a minimum 10 days and maximum 41 days old and will be centrally collected and go to Blade farming with the eventual destination of ABP. Qualifying heifers will be paid out of £156 and bulls £242 if they are sired by one of two Genus Angus bulls.

04/08/20

Arla’s marketing team are selling sweet country air in bottles

At first, Ian took a double take on this latest Arla idea, but then realised it might not be such a daft marketing idea and could even catch on. Arla have produced a limited edition bottle of fresh country air scent to be used with mini fragrance sticks, a promotional idea supported by Ben Fogle, Countryside broadcaster. Its part of Arla’s marketing plan and this time the message to consumers is that many Arla farmers have changed how they spread slurry and instead of the smell of freshly spread slurry, consumers should smell the fragrance and its combination of country meadows and hedgerows.

20/07/20

Arla’s member milk price to stand on for August

As expected, Arla’s conventional and organic milk prices for August remain unchanged. This translates to a conventional manufacturing standard litre milk price of 29.26ppl and based on a liquid standard litre 28.17ppl. For Arla members on organic contracts, the manufacturing standard litre remains at 37.62ppl and based on a liquid standard litre at 36.21ppl.

20/07/20

1ppl milk price increase for farmers supplying Medina – from 1st September

This latest increase puts Medina’s average contract liquid standard litre price to 25.75ppl and getting much closer to its main competitors most of whom have yet to announce a 1st September farmgate price.

20/07/20

Medina to close Watsons Dairy – Hampshire reducing liquid processing capacity by 200 million litres

17/07/20

1ppl Milk Price increase plus fixed price offer for suppliers to Paynes Dairies (Liquid) – from 1st August

This increase takes producers standard liquid litre milk price to 26ppl with no A and B differential pricing. In addition, Paynes are offering a further fixed priced contract at 26.5ppl for a 12-month period on behalf of a customer. Last time Paynes offered a fixed price contract it took a beating in British Dairying for being too low at 27.5ppl for 12, 18 or 24 months duration.

17/07/20

1ppl Milk Price increase for suppliers to Meadow Foods in South Wales, Cumbria and Lancashire – backdated to 1st July

This brings this group of producers back in line with Meadows other contracted producers in Cheshire, Staffordshire, Derbyshire, Shropshire, North Wales, Yorkshire and Worcestershire some of whom feared they were the poor relation potentially in for the chop. The Meadow all contracts 1st August liquid standard litre price for 1st August is 26ppl.

17/07/20

1ppl Milk Price increase for suppliers to Wells Dairy (Liquid) – backdated to June 1st

Wells decided some weeks ago pay increases based on results and this 1ppl takes its producers standard liquid litre price to 25ppl and for a June 1st price is very much back in the mix and embarrassingly ahead of a few of its liquid middle ground competitors especially given this is paid on 102.5% of output. Infact two liquid processor statements Ian has see

17/07/20

1ppl Milk Price increase for Suppliers to Yew Tree Dairy – from August 1st

This is an increase to the Yew Tree A litre price (63%) and takes producers standard liquid litre price to 26.1ppl. The July B price (37%) for Yew Tree Suppliers will easily be north of 25ppl and rising we hope.

17/07/20

1.25ppl Milk Price increase for suppliers to Cotteswold Dairy (Liquid) - from 1st August – PRODUCER NOTIFIED

The liquid standard litre appears to be a closely guarded secret but is circa +/- 25ppl.