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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.}

08/04/20

0.5ppl Price Rise for Waitrose (Muller) aligned suppliers from April 1st – Producer Notified

This results in a liquid standard litre price of 32.35ppl.

08/04/20

0.43ppl Price Rise for Co-Op (Muller) aligned suppliers from May 1st

This results in a liquid standard litre price of 29.82ppl.

08/04/20

0.33ppl Price Rise for Tesco (TSDG) aligned suppliers from May 1st – Producer Notified

This results in a liquid standard litre price of 31.51ppl (Muller) and 31.26ppl (Arla) and is the result of the quarterly review of the Tesco cost tracker.

08/04/20

Belton Farm (cheese) to stand on/hold its producer price until at least 1st June

This results in a manufacturing standard litre price of 27ppl and based on a liquid standard litre 26.25ppl.

08/04/20

2ppl milk price cut for Yew Tree Dairy suppliers plus they will only be paid full price for 54% of their deliveries

In a letter to farmers dated 6th April Yew Tree announced a 2ppl 1st May price cut in addition to an A and B pricing schedule which means from 15th April the A price ( the one to be reduced by 2ppl from May 1st ) will only be paid on 54% of deliveries with the remaining 46% paid at a B price based on the market returns from a combination of SMP, cream and skim concentrate.

08/04/20

3ppl Milk Price Cut for suppliers to Lancashire farm (Pakeeza) backdated to April 1st

This will affect around 40 farmer suppliers. The milk predominantly goes into yoghurt. Lancashire farm have lost around a third of their sales with the resulting surplus milk having to find a new home.

08/04/20

2ppl Price Cut as Medina follow Freshways with delayed payments to farmers

Medina have announced a 2ppl price reduction from 1st May. This takes producers standard liquid litre price to an average of 23.75ppl according towww.milkprices.com In addition, from April 13th payments to farmer suppliers will be delayed by two weeks. All down to COVID-19 and the loss of food service business, but once again it’s a double blow to farmer suppliers and a mirror image of the Freshways announcement.

08/04/20

Spot Milk Price – if you are a bidder, you are a buyer

The spot milk price fell from 15p last Thursday to 7ppl on Sunday and 5ppl yesterday and now its worthless and cheaper to dump the milk unless you are very lucky. Any bidders will be buyers. Note the spot price is collected and delivered to factory at the cost to the selling processor, which results in 2 to 3ppl deduction from the 5p sale price. There simply is nowhere for this milk to go and be processed in GB.

08/04/20

Latest update on the dramatic downturn in Dairy

It’s those processors supplying the food service, schools, universities, restaurants, coffee shops, pubs etc who have seen their order books battered and cash flow predictions torpedoed. The picture is changing daily and at an unbelievable speed, for example in the past 4 days cream values have dropped by 20p kg to between 80 to 85p a deficit of almost 2ppl to a processor.

08/04/20

Current Solutions as collated by Ian

The goal is to remove the surplus distressed milk from the market immediately. Please remember this milk is sloshing around as a direct result of the measures taken by government on a market which is unable to adjust at the speed the chaos has snook up on us. Ian is not suggesting the government was wrong in making the decision it did to close down the Food Service sector but it has to be pointed out that move has resulted in the current chaos.

08/04/20

A friendly warning to a handful of vocal farmers

Understandably, there are a number of farmers who are extremely unhappy with their milk purchaser and certainly one or two milk purchasers appear to be in the farmers firing line. Ian wishes to warn some farmers against crossing the line from being firm and requesting transparency to becoming a nuisance, particularly if they are geographically some distance from their milk purchaser and/or a farmer with a history of quality and farm assurance issues.

02/04/20

1ppl Price Rise for Muller Direct Farmers is a big surprise

This won’t be a popular comment, but Muller’s 1ppl price increase from May 1st is undoubtably a big surprise, so much Ian had to read the Muller 31st March release twice! It is likely to be the only milk price increase for a long time and given the market conditions outlined below short lived. However, in the release, Muller’s Operations Director, Rob Hutchinson comments “We have a resilient supply chain and are well placed to deal with it “.