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 Ian & the team 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 Ian Potter 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.

0.9ppl (Euro Cent per kg) milk price increase for Arla Members – from 1st November

This increase takes producers manufacturing standard litre price to 33.52ppl and based on a liquid standard litre to 32.26ppl.   Meanwhile, the Arla members organic milk price remains a stand on for November at 40.98ppl (manufacturing) and 39.43ppl (liquid).   Arla’s Press release announcement of this increase is far from a fanfare and clearly highlights that Arla’s top Management realise it’s a step in the right direction but by no means enough to cancel out on farm cost inflation particularly in fertilizer and fuel.

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1ppl milk price increase for Crediton Dairy (Liquid) suppliers – From 1st December

This increase takes producers liquid standard litre price to 31.5ppl including Crediton’s 0.5ppl 13th payment.

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0.7ppl milk price increase for Tesco aligned producers – From 1st November

This increase is based on the TSOG cost tracker and takes TSOG producers standard liquid litre milk price to 33.36ppl (Muller Group) and 33.11ppl (Arla)

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1.4 ppl milk price increase for Yew Tree Dairy (Liquid) suppliers – From 1st October

This increase takes producers liquid standard litre price to 30.5ppl

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1.5ppl milk price increase for Pensworth (liquid) suppliers from 1st November

This increase takes producers liquid standard litre price to 30ppl

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Spot & Cream of global production

Meanwhile spot milk has broken the 40ppl barrier with trades now running at 42 to 43ppl and occasionally 44 to 45p It’s a similar story with both UK bulk cream prices, which could very soon hit £2.00kg (currently £1.95).   Meanwhile global milk production for the year is forecast to be down 1.1 billion litres. Here at home GB milk deliveries for September were down 1.

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Forward prices continue to break all records

The StoneXMilkprice.com UKMFE forward prices set yet another all time high this week (18th October) up 0.48ppl on last week to a record 37.96ppl resulting in UKMFE net return to farmers of 34.06ppl

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Dairy UK lambasts the New Zealand trade deal

The government’s announcement of a new trade deal with New Zealand was quickly condemned by Dairy UK as “A blow for UK Dairy”.   CEO of Dairy UK, Judith Bryans hit out at the deal which will result in tariffs on dairy products from New Zealand eliminated over 5 years opening the door wide open for them to penetrate the UK with its own dairy products produced at a lower cost.

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Jeremy Clarkson – 2021 Farming Champion of the Year

The NFU haven’t missed the opportunity to promote Clarkson having named him as Farming Champion of the Year at the Farmers Weekly Awards.   The handful of farmers who fail to recognise Clarkson’s achievement with his TV series, Clarkson’s Farm need to take a reality check.  The vast majority of farmers acknowledge Clarkson, has achieved more to highlight how it really is down on the farm than both Countryfile have in 33 years or the NFU have in the same period.

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Arla sets its target to increase its UK Organic Sales by 50% plus

In contrast to OMSCO’S recent surprise 2ppl farmgate milk price cut covers the news that Arla are holding its organic price and aiming to grow its organic sales by a minimum 50% in only 5 years.  This will mean the Co-ops organic milk requirements will lift from 180 million to 270 million litres year and already a case form an orderly queue as organic producers looking to change, start to bang down the door in Leeds.

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Milk and More doorstep Milk business continues to receive negative feedback

Following from Ian and the Potter offices unfortunate decision to leave Milk and More doorstep delivery in favour of Alkmonton Dairy (see story on our website 02/09/21) comes a worrying number of negative feedbacks on Trust Pilot.   With 3,384 bad reviews and 856 poor and reviews in recent months predominantly coming under the bad category, Patrick Muller and his team have a problem and are likely to be looking gallonage daily.

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GDT records a further healthy 2.2% increase in only 2 weeks

This is the fourth rise in the last five fortnightly GDT Auctions with the 5th recording no change. This weeks average recorded a 2.2% increase to average US $4061 tonne for the increased 27,836 tonnes sold and all products sold recorded increases of at least 1.5% or more. Notable movements since the 5th October Auction Butter                   + 4.7% to average US $5111 tonne Cheddar               + 2.

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