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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.}

07/05/20

Starbucks cut ties with Freshways with immediate effect

When Starbucks coffee shops re open it will no longer be using Freshways milk having this week decided it will source from Arla in future. The fact this change of milk supplier has taken place so suddenly is unheard of. Note some Starbucks franchisees will continue to use locally sourced milk. On the 22nd April this bulletin highlighted the eyebrow raising treatment of and questionable communication by Freshways to its loyal supplying farmers, and how for three consecutive weeks this had attracted the attention of numerous press, most notably The Daily Mail which savaged and discredited its owner Bali Nijjar in a way that no dairy company senior executive has been savaged before.

07/05/20

£1 million milk promotion is launched

AHDB Dairy UK and Government have joined forces and launched a 12 week milk marketing iniative to boost milk consumption and sales of dairy to UK consumers. Its funded by AHDB, Dairy UK, DEFRA, Scottish Government, Welsh Government and the Northern Ireland Executive. The promotion starts next week and the contributions are £500,000 from the four governments, £300,000 from Dairy UK’s processor members and £200,000 from farmer levy board AHDB.

07/05/20

Hardship fund of up to £10,000 per dairy farm in England available

The fund is to help English Dairy farmers who have been hit hardest by Coronavirus e.g. Freshways and Medina suppliers and a few others. The cornerstone is for the money to go to those most in need of financial help with the target to cover up to 70% of their lost income in April and May. The lower 25% threshold to qualify and access the funding means producers must have lost a minimum of 25% of their income in April and May due to Covid19 disruptions.

01/05/20

1ppl milk price reduction for Meadow Foods suppliers in Cheshire, Shropshire, Staffordshire, Derbyshire and North Wales – from 1st May (today)

This reduces producers standard liquid litre price to 25ppl for their A volume milk.

01/05/20

2ppl milk price reduction for Glanbia Cheese suppliers – from 1st May (today)

This reduces producers standard manufacturing litre price to 25ppl and based on a standard liquid litre 24.17ppl.

01/05/20

Barbers (cheese) to stand for a 8th Consecutive month until at least 1st July

This maintains Barbers standard manufacturing litre price at 27.79ppl and based on a standard liquid litre at 26.8ppl.

01/05/20

Saputo (AKA Dairy Crest Davidstow) stand on until at least 1st July

This was agreed back in January and maintains the minimum standard manufacturing litre price at 28.65ppl and based on a standard liquid litre the minimum floor price 27.63ppl.

01/05/20

South Caernarfon Creameries (Cheese) to stand on until at least 1st July

This maintains a manufacturing standard of 27.28ppl based on a standard litre price of 26.34ppl.

01/05/20

Crediton Dairy to Stand on until at least 1st July

This maintains their standard liquid litre price at 27.5ppl.

01/05/20

Muller rescind the 1st May 1ppl price increase but stand on until at least 1st July

Muller Direct farmers will not receive the agreed 1ppl 1st May price increase. This means it will be a stand on milk price at 25.25ppl plus 1ppl to 26.25ppl for farmers who qualify for the Muller Direct Premium and these prices will prevail until at least July 1st. In early April when the increase was announced, the heading on our April 2nd bulletin read; “1ppl Price Rise for Muller Direct farmers is a big surprise” and Ian commented that “It is likely to be the only milk price increase for a long time and given the market conditions outlined below short-lived”.

01/05/20

Mullers retailer supplement reemerges for March deliveries

Ian had completely forgotten this supplement was still in the wings but its back and for March deliveries from Muller Direct conventional contracted producers it will add a welcome 0.63ppl.

01/05/20

April’s volatile cream values summary

According to AHDB Dairy, the April cream price was extremely volatile ranging from a low of around £700 tonne to a top of £1200 an incredible 70% band width of price variation and ended the month at around £900 tonne. Note the value of cream to a liquid processor dropped by 29% between March and April worth 2.11ppl to a liquid processor and is down 39% compared to April 2019 a difference worth 3.