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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.}

05/11/19

Muller solution to Scottish milk output (25%) surge is painful but many feared deeper surgery

Muller’s October review into rocketing Scottish milk output from its 230 supplying farmers has concluded. Disappointingly 14 farmers in Aberdeen have been given 12 months notice to find a new milk purchaser with the likelihood they would be allowed to leave earlier if they can secure a new home for their milk. In addition a tiered transport charged will be introduced from February 2020 involving all Muller farmers (216 post November 1st 2020) and includes aligned and non aligned producers.

05/11/19

Do the Muller numbers stand up to scrutiny

Several Muller farmers were quick to contact Ian raising questions about the Muller Scotland production figures and their proposed remedies. AHDB issued a Scottish milk surplus update last Tuesday confirming that “Milk Collections of farms in Scotland are estimated at 1,478 million litres in 2018/19 an increase of 55 million litres (+4%) compared with 2014/15”.

05/11/19

Remember Muller’s Willy Waving?

Finally remember the press release dated 27th February 2013 when Muller “signalled its intention to be the UK’s largest and most successful dairy company” which at the time Ian mischievously labelled as willy waving. In that release New Muller Suppliers were offered a 1ppl recruitment incentive based on all volume produced in a year 1in addition to the 30.5ppl standard litre price.

05/11/19

Campbeltown/Mull of Kintyre creamery to close after almost 100 years

After 18 months of trying to sell its Campbeltown Creamery, First Milk have had to admit defeat and have on Friday (1st Nov) entered into the required consultation period with 14 employees. The last hope for a sale as a going concern lay with what turned out to be a successful crowd funding bid from the 29 local supplying dairy famers. Sadly when the commercials were crunched it simply wasn’t even close to looking like it would be a viable sustainable business to preserve & continue.

22/10/19

Arla to hold its Member conventional Milk Price for a 10th consecutive month

Arla has today confirmed a stand on member milk price for a 10th consecutive month starting 1st of November at 30.19ppl based on a manufacturing standard litre and 29.02ppl (liquid standard litre). Arla’s UK organic members will see a 0.91ppl (1 euro cent) reduction to 40.22ppl based on a manufacturing standard litre and 38.66ppl (liquid standard litre). UK organic milk sales have declined for a number of reasons in 2019 which is a concern.

22/10/19

Marks and Spencer’s do the honourable thing and pay all its Welsh Tomlinson’s suppliers

Whilst there were we believe only two M&S aligned producers affected by the recent collapse of Wrexham based Tomlinson’s Dairies the top end retailer has paid both farmers directly for all the milk delivered up to and including Saturday 12th of October when Tomlinson’s closed it’s doors. In fact Ian understands M & S took over all farmer payments at least 2 months ago declining to pay Tomlinson’s for the farmers share.

22/10/19

Sainsbury’s only have one realistic option

The move by M&S to do the honourable thing and pay its dairy farmers in full piles even more pressure on Sainsbury’s whose reputation is certainly that it has skin like a rhinoceros. To date Sainsbury’s has shown no inclination to the numerous criticisms and attacks it is experiencing in connection with the outstanding milk money due to its SDDG Tomlinson’s farmers.

22/10/19

Together with Sainsbury’s – Tomorrow’s Conference

Tomorrow Sainsbury’s are holding their 2019 farming conference at the Park Plaza, Westminster from 10am. It’s billed by Sainsbury’s Head of Agriculture Barney Kay as “A great opportunity for you to ask questions which will be put to the Q and A panels by Charlotte Smith” (as in BBC Radio 4 farming today). Send your questions to register@sainsburys-events.co.

22/10/19

Sainsbury’s V M&S

M&S read the signs and took control of the money due to its Welsh Farmers whereas Sainsbury’s appear to have taken no action to protect its farmers. In addition Sainsbury’s allegedly paid Tomlinson’s on a daily basis to aid cash flow. That may have helped Tomlinson’s but having made that move Sainsbury’s are exposed without any trunks on now the tide has gone out because the farmers want paying and Sainsbury’s were aware of how serious the financial position of Tomlinson’s was.

22/10/19

Tomlinson’s sites up for sale but where’s the milk

PWC as administrators for Tomlinson’s of Wrexham are attempting to close bids for up to three Tomlinson sites in less than a week. All of Tomlinson’s direct suppliers have fled to various parts of the country in a bid to find a new home and the Sainsbury’s suppliers have all been given Muller contracts as have the M & S producers. So it’s a liquid business for sale without any milk.

22/10/19

On offer today at Sainsbury’s

Sainsbury’s have a toy sale and you can buy a Hotwheels Corkscrew Crash for only £25 (was £50) plus a Play-Doh Animal Discovery Bucket for £10 (was £20). Tomlinson’s SDDG farmers believe Sainsbury’s James Car Crash Curtis who is credited as been instrumental in introducing 2 wild card processors to Sainsbury’s (Medina & Tomlinson’s) in 2016 is the driver of the Hotwheels Milk Screw Crash and that the Play-Doh Animal Discovery Bucket has had all its milking cows taken out.

19/10/19

1.5ppl Milk Price reduction for Supplier5s to Wyke Farms (Cheese) from 1st October

This takes the producer standard manufacturing litre price to 26.91ppl & based on a standard liquid litre 26ppl.