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.

0.5ppl milk price increase for Arla Members from 1st October

Arla’s conventional and organic milk standard manufacturing litre milk prices for October will increase by 0.5ppl. This translates to a conventional manufacturing standard litre milk price of 29.76ppl and based on a liquid standard litre 28.66ppl  For Arla’s organic members the manufacturing standard litre increases to 38.12ppl and based on a liquid standard litre to 36.

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0.5ppl milk price increase for Arla Members from 1st October

Arla’s conventional and organic milk  standard manufacturing litre milk prices for October will increase by 0.5ppl. This translates to a conventional manufacturing standard litre milk price of 29.76ppl and based on a liquid standard litre 28.66ppl For Arla’s organic members the manufacturing standard litre increases to 38.12ppl and based on a liquid standard litre to 36.

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Arla’s machine continues to deliver impressive results

For those in the dairy industry who use their prayer mats pointing to Leeds and Denmark hoping one day Arla will come unstuck the Co-op giant seems to go from strength to strength rarely putting a commercial foot wrong. Its first half year results for 2020 were very strong in particular the sales of its branded products which recorded an impressive 10.4% growth.

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Roddas (clotted cream) deliver strong financials

Roddas Cornish clotted cream 2019/20 year results are strong with turnover up £2 million (+5.6%) to £38 million and an operating income of £1.88 million with gross profit up to 24.7%. Bank borrowing decreased from £4.13 million to £1.74 million At farmgate level in Cornwall a Roddas contract remains a blue chip must have one. During 2019/20 to date the farmgate liquid litre price has been very stable at 29.

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GDT average falls for a fourth consecutive auction

Last Tuesdays GDT Auction average fell a further 1% to average US $2955 The quantity sold was up 4,325 tonnes (+14%) to that sold only two weeks earlier. However, despite the recent GDT falls Fonterra continue to hold its forecast farmgate payout. The next Auction is on Tuesday next 15th September.

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milkprices.com July spot milk price weighs in at 29.41ppl

This figure is used by several liquid processors as a reference point for farmgate prices. Note the 29.41ppl is a delivered to the customer price from which a realistic 2.5ppl deduction for haulage, testing and a broker margin nets back to an ex farm equivalent of 26.91ppl. www.milkprices.com compare this to the July 2019 average of 23.84ppl which was 3.07ppl lower than 2020 and compared to the June 2020 average (23.

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Lactalis (AKA The Fresh Milk Company & Seriously strong cheese)

Are due to announce their 1st October to 31st December quarterly farmgate milk price within days. Currently for this month it remains at 28.11ppl based on a manufacturing standard litre.

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First Milk to stand on with its milk price until 1st November

This maintains the Co-op’s manufacturing standard litre price at 28.15ppl including the member premium. For those members aligned to the Tesco cheese group the increase takes their manufacturing standard litre price to 29.65ppl. Based on www.milkprices.com First Milks standard liquid litre the price increases to 27.25ppl.

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South Caernarfon Creamery to stand on until 1st November

This maintains producers manufacturing standard litre milk price at 28.03ppl and based on a liquid standard litre at 27.09ppl.

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0.3ppl Milk Price increase for suppliers to Medina – from 1st October

This increase takes produces average contract liquid standard litre price to 26.05ppl.

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0.5ppl Milk Price increase for suppliers to Belton Farm (cheese) – from 1st October

This increase takes producers manufacturing standard litre to 27.5ppl and based on a liquid standard litre to 26.75ppl.

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1ppl Milk Price increase for Wyke Farms (cheese) suppliers – from 1st October

This increase takes producers manufacturing standard litre price to 29.014ppl and based on a liquid standard litre 28ppl. This increase puts Wyke right up there with the best GB farmgate cheese prices a fraction behind Arla 29.26ppl (September price), Saputo/Dairy Crest 29.15ppl. In a letter to its suppliers Wykes milk Procurement Director comments “Firm cheddar prices have allowed our sales team to increase prices into some of our UK customers, and our exports of cheddar are returning to a normal level.

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