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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.}

24/04/20

Statement made by Secretary of State for Environment and Rural Affairs, George Eustice, on Tuesday demonstrates he already has a grip on the true figures

An extract from his statement reads:- Coronavirus presents unprecedented challenges to the businesses we rely on to provide essential services which keep people safe – including food supply, water and waste. Many businesses in these sectors have benefited from Government schemes to support all businesses, including the Coronavirus Job Retention Scheme, Coronavirus Business Interruption Loan Scheme, and the Small Business Grant Scheme and support for the self-employed.

24/04/20

RABDF call for all UK COVID19 affected dairy farmers to complete their survey

The Royal Association of Dairy Farmers is calling on all Covid19 affected dairy farmers to complete its survey to enable it to collate the data and submit to government. For further details, click the link: https://www.rabdf.co.uk/latest-news/2020/4/20/calls-for-dairy-farmers-across-the-uk-to-submit-daily-accounts-of-losses

23/04/20

0.9ppl (1 Euro Cent) decrease for Arla members from May 1st

Arla are not immune from the worldwide effects of COVID19 but on the strength of this reduction, its product mix and ability to divert milk is greater than most. This results in a standard manufacturing litre price of 29.89ppl and based on a liquid standard litre 28.74ppl. The Arla member organic price has also decreased by 1 euro cent resulting in a standard manufacturing litre price of 38.

17/04/20

5ppl milk price reduction in only 12 days for Medina suppliers

Only 12 days ago Medina suppliers were given notice of a 2ppl milk price cut from May 1st. Now a further 3ppl reduction is coming, meaning a whopping 5ppl on May 1st taking producers liquid standard litre price to 20.75ppl. If that wasn’t enough pain, payments to farmers will be delayed by 21 days with the next payment to be made on the 4th May. In the letter dated 15th April, Medina claim spot milk price is 5ppl that day and cream is trading at 80p kg which is certainly not correct.

17/04/20

Freshways announce a 13-day backdated price cut and delayed payment terms

In a letter dated 11th April, the managing director of Freshways, Bali Nijjar, notified suppliers of changes backdated to 29th March, meaning a minimum 13 days retrospective notice. The changes included producers A price to be restricted to 60% of their current A volume/quota and from 29th March this will be paid at a liquid standard litre price of 24ppl (www.

17/04/20

Yew Tree Dairies solution is more transparent

In our 8th April bulletin, we reported that Yew Tree Dairies had temporarily reduced their A price by 2ppl to 23.5ppl from May 1st, having notified producers in advance on the 6th April in what could only be viewed as a very upfront detailed letter of the situation the Woodcock family face. Supplying farmers should value such transparency. The A volume litres to be paid at the standard price was reduced to 54% of each farms original volume from 15th April.

17/04/20

Market Update

10 days ago, spot milk was 5ppl or less and some farmers were told to dump full days collections with no contribution from their processor. Today, there is no one dumping their daily production and spot prices are 15/16p and cream has risen to 90p kg. In an article (www.milkprices.com) earlier this week reported gains in the futures markets including the average price of butter up for the first time in 5 weeks (+16 euros tonne), SMP up 53 euros a tonne from a 4 week down turn.

17/04/20

Paynes Dairies update suppliers on market conditions

Charlie Payne wrote to his producers a week ago to inform them of the current market his business faces and offering to update them all weekly with what is a very fast changing market. This should minimise any sudden surprises especially if the updates are comprehensive and is a smart PR move.

17/04/20

Grahams take positive action to find new markets

Scottish fresh milk family business, Grahams, have increased both the areas they cover with doorstep deliveries as well as the range of products they will deliver to doorsteps. Grahams introduced a doorstep glass bottle service last year which has proved to be a success and attracted a significant number of new regular customers. In a press release Grahams, unlike some, acknowledged its supplying farmers.

17/04/20

Two loud calls to government to provide financial support to dairy

Today a letter from 13 managing directors/CEOs of 13 GB dairy processors has been sent to David Kennedy, director general for food and farming at DEFRA, which originated from Meadow Foods, CEO Mark Chantler. The letter references the conference call on Wednesday and refers to DEFRA’s request for accurate and credible supportive data, presumably to back up jaw dropping claims made by the NFU and others (see below).

17/04/20

The USA’s plan for COVID19 dairy crisis

US estimates claim current milk supply exceeds demand by a whopping 10%. In a plan put to government, which is at present, a proposal, the nuts and bolts are basically as follows: All producers voluntarily cut milk production by 10% using March 2020 as a baseline. Producers to be paid for the dumped milk until at least June. A working capital loan facility available to processors.

08/04/20

Muller Farmers requested to immediately reduce milk supply by 3%

In a letter today to all its producers including retailer aligned, Muller Direct and Muller Organic the firm has requested each farmer reduces deliveries with immediate effect by a minimum of 3% and this to continue until the end of May 2020. The letter states that this means every farmer reducing daily deliveries by a minimum 3% based on a seven-day average.