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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

1ppl milk price increase for suppliers to Barbers Cheese makers – from 1st September

This increases producers manufacturing standard litre milk price to 28.8ppl and based on a liquid standard litre to 27.8ppl. Note this increase ends on impressive 10 month stable farmgate price at 27.8ppl (26.8ppl). The boost is attributable to the Covid 19 increase in demand for cheddar resulting in tight supply and improving prices. As stated in Barbers August farmer newsletter “These gradual improvements in cheddar returns supports this price increase delivery to our dedicated suppliers (farmers) from September”.

04/08/20

Saputo (AKA Dairy Crest Davidstow) stand on until 1st October which triggers deadlock with DCD

The Saputo’s manufacturing standard litre price will remain at 28.65ppl for September deliveries and based on a liquid standard litre at 27.63ppl. Saputo have surprisingly stood firm on its September farmgate milk price and decided not to reward its farmers with any additional money following its incredible Covid 19 sales figures (see below). Saputo’s sales of its flagship branded cheese, Cathedral City, have seen revenue up a staggering 36% with sales volume up 27%.

04/08/20

0.25ppl Milk Price increase for suppliers to The Fresh Milk Company (AKA Lactalis) – from 1st September

This increase takes producers standard manufacturing litre milk price to 28.11ppl and based on a standard liquid litre to 27pplppl. This is the second consecutive monthly price increase from the Cheese processor whose flagship brand is seriously strong cheddar.

04/08/20

South Caernarfon Creamery to stand on until 1st October

This maintains producers manufacturing standard litre milk price at 28.03ppl and based on a liquid standard litre at 27.09ppl.

04/08/20

Pakeeza/Lancashire Farms milk price returns to its pre covid level - from August 1st - PRODUCER NOTIFIED

Pakeeza/Lancashire Farms milk price returns to its pre covid level of 26.8ppl for its 40 or so direct suppliers.

04/08/20

Arla’s member milk price to stand on for August

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. Note the

04/08/20

Cheese has had phenomenal success during the pandemic

An article by Kevin White of the Grocer highlights how sales of cheddar have rocketed and quotes the Marketing Director of Cathedral City (AKA Saputo) “Its been a phenomenal period of trading – everyone’s been so busy… we were on daily calls with our supply chain to make sure we kept supplies on shelf”. For the first time Cathedral City sales hit £305 million on an annualised basis.

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.