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.

New intensive Badger cull licensing to stop after 2022

This is a huge blow for the cattle farmers despite the fact all the evidence points to culling helping to control the spread of TB. In addition, there will be restrictions placed on supplementary cull licencing.

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Global outlook

Rabobank’s global outlook for Dairy Prices is positive with once again the main driver being Chinese demand for Dairy Products. Chinese Demand from China is extremely strong and is heading North of taking more than 40% of New Zealand’s exports in Dairy in 2021. Rabobank’s projections indicate dairy commodity prices will remain strong well into 2022 despite the fact recent global milk output is expected to increase by 6% in 2021.

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3ppl/1.5ppl milk price increase for Pensworth suppliers from 1st July (Updated 02/06/2021)

Pensworth have recently completed a business re-organisation including succession planning. A new contract is on offer to its farmers which will see a 3.0ppl liquid standard litre price increase to 28ppl from July 1st for the farmers who sign. Those who remain on the current contract the standard litre price will receive an increase of 1.5ppl to 26.5ppl from 1st July.

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0.8ppl Milk Price increase for suppliers to Wensleydale Creamery (cheese) – from June 1st (Amended 25/05/2021 12.16pm)

This increases producer’s manufacturing standard litre price to 29.45ppl and liquid standard litre price to 28.5ppl.

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0.44ppl Milk Price increase for Arla members – from June 1st.

The Arla model continues to lead the upward movement in farmgate milk prices. This latest 0.5 eurocents increase results in a June manufacturing standard litre price of 33.23ppl and based on a liquid standard litre 31.98ppl. The increase also applies to Arla’s organic suppliers taking their manufacturing standard litre price to 41.59ppl and 40.02ppl based on a liquid standard litre.

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2ppl Milk Price increase for suppliers to Paynes Dairies (Liquid)

This is split over two months with an additional 1.5ppl from 1st of June, followed by 0.5ppl on 1st of July.   According to our calculation this will increase producer’s liquid standard litre to 28ppl from 1st June and 28.5ppl from 1st July.

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1ppl Milk Price increase for suppliers to Dairy Partners (Newcastle Emlyn) – from June 1st

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Still to move on Farmgate Milk Prices for June

Note all of these are involved in middle ground liquid or brokerage County Milk Products Lanchester Cotteswold Greencroft (North Lakes) Jacksons Llaeth Cymreig Pensworth

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GDT Auction records close to a stand on price

This week’s auction saw the all products average price down very slightly (-0.2%) to average US $4150 tonne for the 21,140 tonnes sold.

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240 Million Litres of Scottish Milk is processed in England

According to AHDB statistics Scotland produced 1.5 billion litres of milk in the milk year 2020/21 of which 16% equivalent to 240 million litres was hauled south into England for processing. That’s a staggering 8,000 lorry journeys carting 30,000 litres each or its 22 loads a day!   AHDB comment further that the total volume of milk output from Scotland has increased by 18% in the past decade with Nett Scottish processing capacity only up by 4%.

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2ppl Milk Price increase for suppliers to Paynes Dairies (Liquid)

This is split over two months with an additional 1.5ppl from 1st of June, followed by 0.5ppl on 1st of July According to our calculation this will increase producers liquid standard litre to 28ppl from 1st June and 28.5ppl from 1st July.

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Lanchester Dairies correction and further news

Last weeks Bulletin suggested Lanchester Dairies in the North East were holding producer’s standard liquid litre milk price for May at 25.7ppl.   Several Lanchester suppliers were quick to email Ian to confirm that their Milk Price for May and June is unchanged at under 25.5ppl.   This week Lanchester have announced a minimum 2.5ppl increase from July 1st.

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