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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.}

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

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.

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.

17/07/20

1ppl Milk Price increase for suppliers to Wyke Farms Somerset (Cheese) – from 1st of August

This increase takes producers standard manufacturing litre price to 27.97ppl and based on a liquid standard litre to 27ppl. Wyke report the recent price increases its sales team have achieved with a number of its UK customers have contributed towards this increase.

17/07/20

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

This increase takes producers standard manufacturing litre milk price to 27.86ppl and based on a standard liquid litre to 26.5ppl.

17/07/20

Market Summary, Arla Expectation and Next Bulletin

For liquid suppliers a 26ppl standard litre price by 1st August is viewed a minimum and any falling below this level, with spot trading at 30ppl up or very close, must be challenged. A cheese manufacturing standard litre of 28ppl or thereabouts by 1st August should also be the norm. Arla have led GB milk prices for many months and are due to announce their August 1st milk price next week.

17/07/20

Butter futures sets a new daily record

The EEX (European Energy Exchange) last Friday achieved a new daily trading record with 644 contracts executed in the day totalling 3,220 tonnes. This eclipsed the previous days record set on the March 4th of 433 contracts involving 1055 tonnes.

17/07/20

South Caernarfon Creameries Ltd (SCC) former Co-op reports solid financial performance

The West Wales Co-operatives 2019-20 Annual report front cover features its successful hand-crafted Dragon brand cheese with the strap line “Proudly owned by our farmers” which probably sums up the business. Record sales with higher volumes of cheese from its 134 members who average 1 million litres each are the key take outs. As with most if not all GB Dairy Co-ops SCC had no producer resignations in the year.