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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.}

02/12/19

DEFRA’s maths is once again called into question

DEFRA are claiming the average farm-gate milk price for October was an eye watering 29.35ppl. In addition they claim the average price paid in September was 29.47ppl which is suspect and certainly warrants further investigation. For October the standard liquid litre price for non aligned ranged from 24ppl to 29.02ppl (Arla) and on a standard manufacturing litre the range was 26.

02/12/19

Muller Direct 2020 premium to double as calf euthanization is added

Muller has doubled its Muller direct Premium from 0.5ppl (2019) to 1ppl (2020 calendar year) subject to Muller Direct farmers meeting certain conditions one of which is by December 2020 those wanting to qualify for the premium must have stopped any on farm practice of euthanizing healthy calves unless the practice is backed up by a veterinary letter. Such a letter will be required before euthanization of any calves under TB restriction will be considered acceptable.

22/11/19

0.4ppl milk price increase for farmers supplying Wells Farm Dairy liquid is the first conventional liquid processor rise since October 1st 2018 - PRODUCER NOTIFIED

Throughout 2019 this bulletin has been a catalogue of processor price reductions and stand on prices. Wells Farm dairy surprised most if not all of its 50 or so local farmer suppliers with the announcement that from December 1st their milk price will increase by 0.4ppl to give a liquid standard litre price of 25.7ppl. One swallow doesn’t make a summer but it’s a positive step in the right direction and should have been well received by most if not all of Wells farmers.

22/11/19

Arla to hold its Member conventional Milk Price for an 11th consecutive month

Arla has today confirmed a stand on member milk price for an 11th consecutive month starting 1st of December at 30.19ppl based on a manufacturing standard litre and 29.02ppl (liquid standard litre). Arla state that “The outlook for the milk price for the coming months remains stable” which for Arla members is a positive note to end the year on. Arla’s UK organic members standard litre milk price is also unchanged with its manufacturing standard litre at 41.

22/11/19

Saputo (AKA Dairy Crest Davidstow Cheese) to stand on/hold its suppliers milk price from 1st December until at least the end of the year

This announcement maintains the Davidstow manufacturing standard litre price at 29.9ppl and based on a standard liquid litre at 28.82ppl.

22/11/19

First Milk Cheese Member price to stand on/hold from 1st December until at least the end of the year

This announcement maintains the Co-ops manufacturing standard litre price at 27.9ppl and based on a liquid standard litre at 27ppl.

22/11/19

Paynes Dairies (Liquid) to stand on/hold its producers Milk Price for December

This means the existing liquid standard litre price of 25.75ppl continues.

22/11/19

0.5ppl milk price reduction for suppliers to Dale Farm Kendall - From October 1st

This is a backdated price cut results in a 1st October standard liquid litre price of 26.14ppl.

22/11/19

0.5ppl milk price reduction for suppliers to Grahams Dairies (Scotland) from December 1st

This reduces producers liquid standard litre milk price to 25.5ppl.

22/11/19

Dale Farms Northern Ireland stands on/hold members milk price from September 1st

This maintains Dale Farms (NI) standard liquid litre price at 25.84ppl.

22/11/19

Grahams declare a profit in its annual results

In its year ending 31st March 2019 Grahams has declared a £2.2 million profit before tax up from 1.3 million (2017 & 2018) with turnover up £4.9 million (4.7%) to £109 million. The business also invested £5.6 million of capital during the year. Note in 2018 the 1.3 million reduced to a pre tax profit of £400.000 due to exceptional costs. The numbers may sound big but as a return on capital they are nothing to trumpet.

22/11/19

GDT average up 1.7%

Tuesday GDT Auction produced on all products average up 1.7% to average US $3481 tonne for the 37,968 tonnes sold to 134 buyers. The GDT price rises are predicted to continue until into 2020 due to increasing global demand out pacing milk supply which is flat lining and static. On the back of the recent GDT results New Zealand milk price forecasts are expected to rise again.